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Realestate > Chapter 15 > Flashcards

Chapter 15 Flashcards

Landlord & Tenant

1
Q

Leasehold Estate

Reference from chapter 2

3 questions on test from this segment

A

Renting (less than ownership)

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2
Q

Freehold Estate

A
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3
Q

Leasehold Estate

A

Tenant gets theh right of use & possesion

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4
Q

LessOR

A

Landlord

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5
Q

LessEE

A

Tenant

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6
Q

Another word for a llease agreement

A

Demise

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7
Q

Privity of Estate

A

Two people that have some initerste in the property (aka landlord/tenant)

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8
Q

Privity of Contract

A

Has to be written in the lease

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9
Q

Testable

In NC there are 3 seperate laws that apply

A

Residential rental agreement act

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10
Q

Residential Rental Agreement Act

Not covered: hotels, motels, vacation rentals

A

“Landlord” is considered:
* owner
* rerntal management company
* rental agent
* anyone having actual or apparent authority

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11
Q

NC Tenant Security Deposit Avt

A
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12
Q
A
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13
Q

Residential Rental Agreement Act

A

Landlord basic responsibility:
Keep the property in “fit” condition or also

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14
Q

Smoke & Carbon Monoxide Detectors

A

Mandatory
* Carbon Monoxide IF: attached to garage, fossil fuel appliance
* Landlord MUST install 10-year lithium batteries or hard wire it
* Tenant replaces the batteries

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15
Q

Water, Sewage, Electricity

A

Landlord may charge for utilities
Landlord may NOT disconnect services for noon-payment
Most notify renter of water contamination

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16
Q

TP

Imminently Dangerous Conditions

A

Unsafe wiring
unsafe flooring or steps
unsafe ceilings

*landlord must rememdy withiin a reasonable period of time

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17
Q

Landlord Rights to Access the Property

A

Unless written in lease landlord cannot access property unless immediate emergency

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18
Q

Protected Tenants

Tenants that can get out teh lease agreement under special circumstances. “Protected Tenants”.

A

Victims of Domestic Violence or Abuse
* with 30 day notice can get out of lease
* lease continues for other renters
Military Personnel
* military may terminate lease within 30 day notice

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19
Q

Tenant’s Basic Respomsibilotries

A
  • Keep unit clean and safe
  • Dispose of garbage
  • Keep plumbing fixtures clean
  • Not destroy alarms
  • Replace batteries in alarms
  • Comply with building and housing codes
  • Respomsible for damages that are: negligent and intentional
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20
Q

TP

Eviction (two categories)

A

Constructive Eviction: if landlord breaches their duties you can evict yourself
Actual Eviction: breach of lease for non-payment or compliance. Often referred to as **SUMMARY EJECTMENT **

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21
Q

NC Eviction Process

A
  • Held in small claims court
  • If a landlord is going to evict someone they must holder personal property for: 7 days (if valued $500 >; 5 days if valued < $500
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22
Q

Transfer of Rental Property

A
  • When a property is sold the new owners must honor th elease agreement
  • When a property is foreclosed and the new owner is going to live in the property they must give renters 90 day notice to move out

appurtenant: runs with teh land!!

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23
Q

Tenant Security Deposit Act

Note to self: there is a Q&A brochure on the NC residential site

A
  • Applies to all owners & landlords (except single room rentals)
  • All deposits go into a trust account
  • Must notify tenant within 30 days where the money is beiing hel
  • Maximum amount of deposit (can be weekly (2 weeks worth), monthly (1 1/2 months), yearly no more than 2 months)
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24
Q

TP

Peritted Use of Security Deposit

A
  • Non-payment of utilities
  • Damage to property
  • Unfulfilled lease term
  • Unpaid bills that create a lien
  • Costs of re-renting
  • Cost of removal and storage pf personal property
  • Costs associated with eveiction
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25
Q

TP

Landlord CANNOT Deduct From Security Deposit

A
  • Normal wear and tear
  • Carpet cleaning
  • Repaingting
  • Small nail holes and other non-intentional damage
26
Q

Accounting for Security Deposits

A
  • Deposit into account within 3 business days
  • Let renter know where the money is being depiositied
  • Return an itemized list of what was deducted and why (withiin 30 days). If they CANNOT, provide prelliminary and then a
  • Final accounting (within 60 days)

Lease is appurtment: RUNS WITH THE LAND

27
Q

Transfering a Rental Property

A
  • Security deposits most transfer with the property upon sale
  • Prorated rent should be transefered as of date of sale
28
Q

TP

Pet Deposits

A
  • Landlords may allow or prohibit pets
  • Can charge a refundable or noon-refundable deposit
  • Landlords CANNOT charge a “pet deposit” for a service animal
29
Q

Service & Assistive Animals

A

NOT considered pets

30
Q

NC Vacation Rental Act

A

Shorter than 90 days
Any person of entity who owns or manages the property

31
Q

What is a vacation rental property

A

Owener has residnsure elsewhere Uses property for leisure
Under 90 days
Exemptions: hotels, mptels, etc.

32
Q

Under the Vactaion Rental Agreement Act

DREAMOILS: leases longer than 3 years have to be in writing and. recorded

A

Vacation rentals less than 90 days must also be in writing

33
Q

Written Agreemtn is Non-Enforceable Unless

A

Tenant Signs agreement
Or
After receipt of the agreement the tenant:
Paid monies
Took possession

34
Q

TP

Expedited Eviction Process for Vacation Rentals

A
  • 4 hour noticed required!
  • Cases must be heard 12-48 hours
35
Q

If renting a vacation rental (VRBO, Airbnb)

A
  • Money must be held in a trust account (Bank with offices in NC)
  • 50% of payment is given until renter takes occupany
36
Q

Handling of Vacation Rental Funds

A
  • Disclose to tenant where funds are held
  • Must refund if cannot deliver occupancy
  • Tenant Security Deposit Act applies EXCEPT:
  • the time for returning deposit is 45 days vs. 30 days (typical rental/lease)
37
Q

Sale of a Vacation Rental Property

A
  • Always a “material fact”
  • New buyer MUST honor all reservations/agreements upto 180 days post closing
  • Copies of lease agreements must ne provided to the new owner within 10 days of closing
38
Q

Travel Agent Referral Fees

only other person who can earn a commission/referral fee vwithour a licence is atravel agent

A

Travel agents CAN earn a commission/referral fee WITHOUR having a realestate license

39
Q

Non-Freehold Estates

A

Less than freehold
Less than owenrship

40
Q

Types of Non-Freehold Estates

Talking about how the lease ends

A
  • Estate for Years
  • Periodic Tenancy
  • ESTATE AT WILL
  • ESTATE AT SUFFERANCE

Only need to know about first two types for test

41
Q

Estate for Years

vacation properties

A
  • A DEFINITE period of time
  • A DEFINITE start rental date and end rental date
  • Automatically terminates at the end of tenancy (no notice required)

No notice required
“Years” menas date NOT Years!

42
Q

TP

Periodic Tenanacy (Estate from Period to period)

A

Had an agreement for an initital period of time (aka 12 month lease).
Differnec - termonation of the lease REQUIRES notice.
* Example: if you sign a lease for 12 months, need to inform landlord you are moving out

Notice Period:
Week to week = 2 dyas
Month to month = 7 days
1 year = 1 month

Notice is required

43
Q

Tenancy at Will

A

Allow someone on property
(girll scout selling cookies)

44
Q

Estate at Sufferance

A

Staying against landlords will

45
Q

TP

Types of Leases

A

Gross Lease (residential)
Net Lease (commercial)
Percentage Lease (retail)

46
Q

Gross Lease (residential)

A

Landlord pays taxes, insurance, etc.

47
Q

Net Lease (commercial)

A

Tenant pays a flat fee AND a portion of maintenace, property Taxes, Insurance

48
Q

Retail Lease (aka: Percentage Lease)

A

Lease agreement is based on a fixed amount plus a percentage of gross income or sales

49
Q

Graduated Lease

A

Starts out low and increases over time

50
Q

Index Lease

A

Tied to consumer price index (high rise)

51
Q

Ground Lease

dont need to know for test

A
  • Renting or leasing the dirt
  • Typicall long (99 years)
  • Any improvements made become the property of the lessor
52
Q

Oil and MIneral Lease

review Oil and MIneral rights for test

A
  • Required to be in writing in NC per the Statue of Frauds
  • Must be recorded
  • Disclosed in the transfer of propery (MOG)
53
Q

A Vaid Lease Agreement Must Have

A

mutual agreemnt
consideration
legal capacity
legal objective

Form of a contract

54
Q

Subleasing

A
  • Tenants leasing their property out to another person
  • Need approval from porperty owner/manager
  • Original tenant is liable
  • Usually prohibited in residential agreements
  • This is used a lot in commercial properties
55
Q

Sublease

A

Sublease Sandwich
LessOR
SubleaseEE
LessEE

56
Q

Lease Purchase vs. Lease Option

A

Lease Purchase: signed contract with executed purchase contract
Lease Option: buyer is not obligated to buy

57
Q

TP

Covenant of Quiet Enjoyment

Note to self: know this for the test

A
58
Q

Termination of Leases

know for test: condemnation of propert

A
  • Full performamce
  • End of lease terms
  • Mutual cancellation
  • Condemnation of property (immenent domain) terminates a lease
  • Fail to pay
  • Fail to maintain

Death DOES NOT terminate the obligations of a lease

59
Q

Affidavit of Possession

A
60
Q

Applicatio

REview Connor Act

A

Only leases for longerr than 3 years must be in writing to be enforceable in NC
EXCEPTION: Vacation Rental Act
Only leases for longer than 3 years must be recorded (Connor Act)

61
Q

Connor Act

Know this:

A

Realestate (21 decks)

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