Chapter 7

Question 1

It is illegal to screen and eliminate potential tenants based on:

Answer 1

marital status

Question 2

A lease in which the lessee is required to pay the property taxes, insurance, and maintenance is known as a:

Answer 2

triple net lease

Question 3

Lessor A leases to Lessee B who legally subleases to Sublessee C. Which of the following is correct?

Answer 3

Lessor A looks to Lessee B for payment

Question 4

A landlord signs a 3-year binding residential lease with a tenant. Six months later, the landlord wishes the tenant to move so the landlord’s father can occupy the apartment. The tenant will be forced to move after the landlord serves a:

Answer 4

the tenant cannot be forced to move

Question 5

Most month-to-month rental agreements can be classified as an:

Answer 5

estate from period to period

Question 6

A lease on agricultural land cannot exceed:

Answer 6

51 years

Question 7

The legal action in court to remove a tenant is called:

Answer 7

unlawful detainer

Question 8

Implied right of habitability means the:

Answer 8

landlord guarantees the residential unit meets housing codes

Question 9

The maximum security deposit for an unfurnished apartment is:

Answer 9

two month’s rent

Question 10

A lease for a definite period of time at a flat rental rate is best described as an:

Answer 10

estate for years, payable at a gross rate

Question 11

A lessee has a: 
 freehold estate 
  life estate 
  none of these 
  fee simple estate

Answer 11

none of these

Question 12

If an owner deeds a property encumbered by an existing lease, the new owner is best described as the:

Answer 12

grantee-lessor

Question 13

A landlord signs a lease and the lessee takes possession but never signs the lease. Under these circumstances the lease is:

Answer 13

valid

Question 14

Quite often a retail store owner will contract to pay rent under a percentage lease. This means the rent is based on:

Answer 14

gross receipts with an established base rent

Question 15

If a lessee abandons a lease prior to the expiration date, the lessor may:

Answer 15

leave the premises unoccupied and sue for each installment as it becomes due

Question 16

When a lease is terminated, trade fixtures can usually be:

Answer 16

removed by the tenant, if removal damage is fixed

Question 17

How many units would there have to be in an apartment building to make it necessary for the owner to hire an on site resident manager?

Answer 17

16 or more units

Question 18

A broker is hired to collect rents in an apartment house. The rents are due January 1, and the broker is able to collect all but one of the tenant’s rent. The next day the owner dies, and the day after that the delinquent tenant refuses to pay the broker, saying that the owner’s death voided the property management contract. The tenant:

Answer 18

under these circumstances, the tenant was right to not pay

Question 19

When a valid lease is assigned, the assignee receives the entire leasehold interest and becomes:

Answer 19

a tenant

Question 20

A lease is to lessee as:

Answer 20

agreement of sale is to equitable owner

Question 21

A tenant makes a verbal agreement, in front of several people, to lease a home for six months. Two months later the tenant notified the landlord that he or she will be moving out next week. The lease agreement is:

Answer 21

binding although oral

Question 22

Ms. Estes owned a fee simple estate and leased it to Mr. Eaton for six years. Ms. Estes has:

Answer 22

a reversionary interest

Question 23

Under the rental offset rules, which of the following is true? The tenant can do housing code repairs up to:

Answer 23

one month’s rent, twice per 12 month period

Question 24

Under a three-year lease that has expired, if the tenant remains in possession and the owner accepts rent payments, the lease:

Answer 24

becomes a month-to-month tenancy

Question 25

A store building was leased for ten years and after seven years the lessor died. The lessee learned that the lessor had only a life estate and upon death the property went to the deceased’s children. The

Answer 25

lease terminated on the lessor’s death

Question 26

Specific laws in the State of California make it illegal to screen and eliminate potential tenants for a rental unit based on:  
all of the above 
  religion, sex, or age 
  physical handicap, or marital status 
  race, color, or creed

Answer 26

all of the above

Question 27

The initials CPM stand for:

Answer 27

Certified Property Manager

Question 28

Which of the following types of leaseholds is no longer used in the State of California?

Answer 28

tenancy at will

Question 29

If you were to lease a mountain cabin from April 5 to April 30 of the same year, the lease would be recognized as:

Answer 29

estate for years

Question 30

A type of lease that allows the lessee to purchase the property at a later date at a predetermined price is known as a:

Answer 30

lease option