Chapter 15: Landlord & Tenant Flashcards
The concept of “constructive eviction” requires the lessor to keep the property in a “fit and habitable” condition. Which of the following areas of the property would apply under this doctrine?
1. Common hallway leading to the apartment units
2. Parking lot
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
C. Both 1 and 2
(A landlord has a mandatory obligation to keep both the unit and the common area in a fit and habitable condition. This is an obligation that the landlord may not disclaim or avoid by leasing a property “as is.”)
Which of the following statements is/are correct regarding a ground lease? 1. The tenant may erect a building on the property. 2. The tenant may extract minerals from the ground.
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
A. 1 only
(Typcially most ground leases allow a tenant to erect structures on the property, but the tenant may not extract minerals from the ground. If the tenant erects buildings on property subject to a ground lease, at the end of the lease those buildings become the property of the lessor)
Rent would best be defined as:
A. the contractual consideration to a third party
B. the consideration for the use of the real property
C. all monies paid by the lessor to the lessee
D. the total amount owed under the terms of the lease
B. the consideration for the use of the real property
(Rent is the consideration for use of the property. There may be other amounts due under various leases for additional items such as late fees, deposits, etc)
A tenant’s apartment lease has expired. She and her landlord have agreed that she may remain on the premises until a sale of the building is finalized or until the tenant locates another suitable rental, whichever occurs first. The tenant will continue to pay her normal monthly rent. She and the landlord made a commitment to inform each other two weeks prior to ending this agreement. This tenancy is described as:
A. estate at will
B. estate sale
C. estate at sufferance
D. periodic tenancy
D. periodic tenancy
(This is a periodic tenancy or a tenancy from period to period because it does not contain a specific expiration date and requires notice for termination)
The tenant leases a heated apartment, but the landlord fails to provide heat because of a defective central heating part malfunction. After numerous written requests for the landlord to fix the heating problem, the tenant vacates the premises and refuses to pay any more rent. This is an example of:
A. abandonment
B. actual eviction
C. constructive eviction
D. lessor negligence
C. constructive eviction
(In NC a tenant never has the right to make repairs, withold rent or pay for items and deduct them from the rent. The tenant’s only option is to proceed with a constructive eviction (breach of the lease by the landlord) and be permitted to move out and terminate their obligations under the lease)
A residential tenant is unhappy with the habitability of an apartment because the toilet will not flush. Under the North Carolina Rental Agreements Act, the tenant may:
A. hire a plumber and charge it to the landlord
B. pay a plumber and deduct it from his next month’s rent
C. withhold rent until the problem is fixed by the landlord
D. wait for the landlord to make the repair or utilize the doctrine of constructive eviction
D. wait for the landlord to make the repair or utilize the doctrine of constructive eviction
(In NC a tenant never has the right to make repairs, withold rent or pay for items and deduct them from the rent. The tenant’s only option is to proceed with a constructive eviction (breach of the lease by the landlord) and be permitted to move out and terminate their obligations under the lease)
A businessman agrees to lease a barber shop from a landlord. The party responsible for the expense of making repairs to the interior of the building would most likely be:
A. shared equally by the landlord and the tenant
B. determined by negotiation of the parties per the lease agreement
C. the landlord under the NC Residential Rental Agreements Act
D. the tenant
B. determined by negotiation of the parties per the lease agreement
(The NC Residential Rental Agreements Act has no application to commercial properties. The parties would have to address these issues in their lease agreement)
A residential lease prohibits tenants from altering the property in any way without the landlord’s written permission. A tenant who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself nor can she use the bathroom facilities in her wheelchair. Which of the following is TRUE?
A. The landlord must pay for alterations that make a unit accessible and livable for tenants with disabilities.
B. The tenant cannot remedy these challenges because of the lease terms.
C. The landlord should not have rented this apartment to the tenant.
D. The tenant is entitled to make and pay for reasonable necessary alterations.
D. The tenant is entitled to make and pay for reasonable necessary alterations.
(This topic is covered more fully in Chapter 20 dealing with fair housing and issues of disability. A landlord must permit the tenant to make modifications for disabilities, the tenant pays for the modificiations and can be required to restore them at the end of the tenancy)
A tenant is in possession of property for an automatically renewable period of time. The tenancy is terminable with proper notice by either party. This is an example of:
A. estate for years
B. periodic tenancy
C. determinable estate
D. estate at sufferance
B. periodic tenancy
(This is a periodic tenancy because the lease has no definite termination date and requires notice for termination)
Tenants living in foreclosed residential properties:
A. must vacate the property within 48 hours of the foreclosure
B. must vacate the property within 30 days if the new owner wishes to occupy the property
C. can always occupy the unit until the end of their lease period
D. have at least a 90-day notice to vacate the property per federal law
D. have at least a 90-day notice to vacate the property per federal law
(The general rule is that leases travel with a property when it is sold and the new owner has no right to terminate the leases. This is an exception dealing with the sale of foreclosed property if the the new owner intends to occupy the property they may terminate the lease with a 90 day notice)
In North Carolina, a tenant’s security deposit held by a licensee:
A. must be safely held in a trust account
B. can be used by the landlord to pay the filing fees to commence an eviction process against the tenant for alleged breach of the lease terms
C. must be accounted for and/or returned to the tenant no later than 15 days after the end of the tenancy
D. cannot be placed in an interest-bearing trust account unless the tenant receives the interest income
A. must be safely held in a trust account
(In NC all security deposits must be held in a trust account. If the owner is not using a licensed property manager they must still hold the monies in a trust account or obtain a bond)
A commercial tenant is leasing a retail space. The landlord has required them to pay a base amount plus the real estate taxes, insurance and maintenance on the property. This type of a lease is a:
A. gross lease
B. net lease
C. graduated lease
D. compounded lease
B. net lease
(In a net lease the tenant pays the expenses on the property. These usually include the taxes, insurance and maintenance, but include any items to which the parties agree)
A lease that contains regular and predictable changes in the amount of the lease rental payments would be considered what type of lease?
A. index lease
B. escalator lease
C. graduated lease
D. percentage lease
C. graduated lease
(Both graduated leases and index leases can change. The difference is that in a graduated lease the change is certain to occur at specific intervals)
A commercial tenant leased a warehouse space and later experienced some difficulties with their business. In order to not default on the lease, the commercial tenant located another business and rented the space to them under a subleasing assignment. Under these circumstances, who owes obligations to the landlord in the event of a breach?
A. The original tenant is in violation of the lease and the landlord may terminate the lease due to a material breach.
B. Only the original tenant is obligated to the landlord.
C. Both the current tenant and the original tenant are obligated under the lease.
D. There is no longer an obligated party once the landlord has accepted rent from the new tenant.
B. Only the original tenant is obligated to the landlord.
(When subleasing occurs the original tenant remains primarily liable on the lease)
All of the following would terminate a residential lease, EXCEPT:
A. completion of the lease term
B. mutual cancellation
C. sale of the property
D. failure by the landlord to maintain the property
C. sale of the property
(Sale of a property does not end a lease. The lease continues and the new owner is obligated to honor the lease. At closing both pro-rated rents and earnest money deposits will get transferred to the buyer)
