Chapter 20

Question 1

Certified Property Manager (CPT)

Answer 1

A designation awarded to those who have taken required courses in property management.

Question 2

Constructive Eviction

Answer 2

Breach of the covenant warranting quiet enjoyment in a lease; when a landlord performs an act depriving the tenant of quiet enjoyment of the premises thereby causing the tenant to move.

Question 3

Demise

Answer 3

A conveyance of an estate to another for life, for years, or at will; to lease; “the demised premises”.

Question 4

Escalation Clause

Answer 4

A clause in a contract permitting an adjustment of certain payments up or down to cover certain contingencies; mostly found in agreements of sale, mortgages and leases.

Question 5

Estate for Years

Answer 5

A lease; an interest in land by virtue of a contract for the possession for a definite and limited period of time.

Question 6

Gross Lease

Answer 6

A lease of property in which the lessor meets all property charges incurred through ownership.

Question 7

Ground Lease

Answer 7

A lease for the use of the land, usually providing for improvements to be placed on the land by the user.

Question 8

Holdover Tenant

Answer 8

A tenant who remains in possession of a property after expiration of lease term.

Question 9

Institute of Real Estate Management (IREM)

Answer 9

An organization acting as an exchange for management ideas, and recognizing achievement in the field. Has a Code of Ethics for real estate managers.

Question 10

Lease

Answer 10

A contract whereby the lawful owner of the property transfers his rights of use and possession to another for a specified term.

Question 11

Net Lease

Answer 11

A lease in which the tenant pays rent for occupancy, plus maintenance and operation expenses, and usually including taxes and insurance.

Question 12

Notice to Quit

Answer 12

Notice to a tenant to vacate.

Question 13

Percentage Lease

Answer 13

A lease of property in which the rental is based upon the volume of gross sales made on the leased premises.

Question 14

Periodic Tenancy

Answer 14

A lease running from period to period, such as week-to-week, or month-to-month.

Question 15

Step-Up Lease

Answer 15

A lease with fixed increases at stated intervals, or increases based upon periodic appraisals at stated times; graduated lease, graded lease.

Question 16

Sublease

Answer 16

A lease given by a lessee for a portion of the unexpired balance of his term.

Question 17

Summary Possession

Answer 17

When for a good reason a landlord may terminate a lease and the tenant must appear and show cause why he should not be evicted. Also called Dispossess Proceeding or Unlawful Detainer.

Question 18

Surrender

Answer 18

The cancellation of a lease by an act of mutual consent of lessor and lessee.

Question 19

Tenancy at Sufferance

Answer 19

A tenancy arising when the tenant wrongfully holds over after the expiration of his term. The landlord has the choice of evicting the tenant or accepting him for a similar term and under the conditions of the previous holding.

Question 20

Tenancy at Will

Answer 20

Possession and occupancy of land terminable at the will of either party.

Question 21

Waste

Answer 21

Improper use or damage by one in possession, such as a tenant or vendee.