Chapter 25 Review: Property Management and Leases

Question 1

The lessor is the landlord; the lessee is the

Answer 1

tenant

Question 2

What are the four types of leases?

Answer 2

Estate at will
Estate from Year-to-Year (Periodic lease)
Estate for Years
Tenancy at Sufferance

Question 3

Death of the landlord or _____________ does not terminate a lease. The estate or new owner has to honor existing lease agreements

Answer 3

sale of the property

Question 4

For properties built prior to 1978, the landlord must provide a ________________________ form to the tenant

Answer 4

Lead-Based Paint Disclosure

Question 5

___ is a legal action the landlord takes to remove a tenant. The landlord may not force the tenant out by changing locks or turning off utilities

Answer 5

FED (Forcible Entry and Detainer)

Question 6

With a sublease, the lessee/sublessor is sandwiched between the lessor and the lessee. The party responsible for payment of rent to the landlord is the

Answer 6

lessee/sublessor

Question 7

When the tenant must abandon the premises because the landlord has made them uninhabitable, the eviction is called ___________ eviction

Answer 7

constructive

Question 8

The tenant pays fixed monthly rent in a fixed or _____ lease

Answer 8

gross

Question 9

In a ___ lease, the tenant pays monthly rent plus some or all of property ownership expenses

Answer 9

net

Question 10

In a __________ lease, the tenant pays base rent plus a percentage of the income received by the tenant

Answer 10

percentage

Question 11

A ________ lease allows the landlord to periodically step up the rent payments

Answer 11

graduated

Question 12

The_________ lease bases rent on market or assessed value

Answer 12

reappraisal

Question 13

An ______ lease adjusts according to an outside index

Answer 13

index

Question 14

When the landlord and tenant enter in a lease purchase, the tenant pays monthly rent then eventually

Answer 14

purchases the property

Question 15

With a lease option, the tenant rents and has an option to purchase within a

Answer 15

stipulated time

Question 16

With a ground lease, the tenant rents the

Answer 16

ground

Question 17

An estoppel certificate restates the terms of the leases and is signed by the

Answer 17

tenants

Question 18

A property management contract creates an agency relationship between the management company and the

Answer 18

owner of the property

Question 19

The primary goal of a property manager is to generate the ______________________ for the property while maintaining it

Answer 19

highest net operating income