Chapter 11: Landlord and Tenant

Question 1

constructive eviction

Answer 1

The actions of a landlord that so materially disturb or impair a tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent

Question 2

covenant of quiet enjoyment

Answer 2

The covenant implied by law by which a landlord guarantees that a tenant may take possession of leased premises and that the landlord will not interfere in the tenant’s possession or use of the property

Question 3

estate at suffereance

Answer 3

The tenancy of a lessee who lawfully comes into possession of a landlord’s real estate but who continues to occupy the premises after the lease has expired against the landlord’s wishes

Question 4

estate at will

Answer 4

An estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite and no prior notice to terminate is needed.

Question 5

estate for years

Answer 5

A possessory interest in property for a definite period of time leased for a specified consideration

Question 6

estate from period to period

Answer 6

A possessory interest in leased property that automatically renews from period to period - week to week, month to month, or year to year; notice is necessary to terminate. Also called periodic tenancy

Question 7

fixed lease

Answer 7

Also called gross lease

A lease of property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases fall under this category

Question 8

full-service lease

Answer 8

A commercial lease where tenants share in overall operating expense for the common areas of the building. Usually rent is paid as a base amount plus a prorated share of the complex’s operating expenses

Question 9

graduated lease

Answer 9

A commercial lease that contracts for pre-set rental increases over the lease period

Question 10

gross lease

Answer 10

Also called fixed lease

A lease of property under which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases fall under this category

Question 11

ground lease

Answer 11

A lease of land only, on which the tenant is usually required to build as specified in the lease. Such leases are usually long-term net leases

Question 12

holdover tenant

Answer 12

A person who retains possession of leased property after the lease has expired; the landlord may continue to accept rent or start eviction procedures

Question 13

implied warranty of habitability

Answer 13

A theory in landlord/tenant law in which the landlord renting residential property implies that the property is habitable and fit for its intended use

Question 14

index lease

Answer 14

A commercial lease that allows the periodic adjustment of rent based on a named index such as Consumer Price Index (CPI)

Question 15

law of negligence

Answer 15

If a tenant or guest is injured on the landlord’s rental property, the landlord, and his/her agent, may be held liable due to their responsibility to maintain common areas and comply with the Residential Rental Agreement Act

Question 16

lease

Answer 16

A written or oral contract between a landlord (the lessor) and a tenant (the lessee) that transfers the right to exclusive possession and use of the landlord’s real property to the lessee for a specified period of time and for a stated consideration (rent)

Question 17

leasehold estate

Answer 17

Also called nonfreehold estate

A tenant’s right to occupy real estate during the term of a lease, generally considered a personal property interest

Question 18

lessee

Answer 18

tenant

receiver of lease

Question 19

lessor

Answer 19

landlord

giver of lease

Question 20

net lease

Answer 20

A lease requiring that the tenant pay rent plus some or all of the property charges, such as taxes, insurance, utilities, and repairs

Question 21

North Carolina Vacation Rental Act

Answer 21

An act that establishes uniform rules for landlords, tenants, and their agents involved in the handling of short-term rentals under 90 days in length where the tenant has a primary residence elsewhere.

Question 22

novation

Answer 22

Substituting a new contract for an old one or substituting new parties to an existing contract

Question 23

periodic tenancy

Answer 23

A possessory interest in leased property that automatically renews from period to period - week to week, month to month, or year to year; notice is necessary to terminate. Also called estate from period to period

Question 24

Residential Rental Agreements Act

Answer 24

The state law that mandates delivery of habitable residential rental units; obligations of the landlord and the tenant are mutually dependent. Provides tenant with rights and remedies such as the Retaliatory Eviction Doctrine

Question 25

retaliatory eviction

Answer 25

Illegal eviction of a tenant that has exercised protected rights under the law

Question 26

sandwich lease

Answer 26

The sublessor’s (original lessee’s) interest in the real estate

Question 27

security deposit

Answer 27

A payment by a tenant, held by the landlord during the lease term and kept (wholly or partially) on default or destruction of the premises by the tenant

Question 28

self-help eviction

Answer 28

Illegal eviction practices used by landlords instead of lawful use of summary ejectment

Question 29

sublease

Answer 29

The leasing of premises by a tenant to a third party for part of the lessee’s remaining term

Question 30

summary ejectment

Answer 30

Legal eviction procedure heard before a magistrate for removal of a tenant that has breached the lease terms

Question 31

Tenant Security Deposit Act

Answer 31

The state act that regulates the amount and use of money that can be required as a security deposit and how the landlord holds that deposit. The maximum amount of the deposit depends on the term of the tenancy

Question 32

percentage lease

Answer 32

A commercial lease , commonly used for retail tenants; rent is based on the tenant’s gross sales at the premises. There is usually a small base monthly rental plus a percentage of any gross sales above a certain amount.

Question 33

trade fixture

Answer 33

An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires