Chapter 7

Question 1

assignment

Answer 1

transfer of a tenant’s
entire interest in a leased
property to another party,
known as an assignee.

Question 2

constructive
eviction

Answer 2

When a landlord’s actions or
failure to act materially
interfere with a tenant’s
beneficial use and enjoyment
of the leased property,
leading the tenant to vacate
the premises

Question 3

default

Answer 3

Failure to fulfill the
obligations or terms of a
lease agreement

Question 4

gross
lease

Answer 4

lease agreement where the
tenant pays a fixed rental
amount, and the landlord is
responsible for all property
expenses, including taxes,
insurance, and maintenance

Question 5

ground
lease

Answer 5

long-term lease of land
where the tenant (lessee) has
the right to use the land for a
specific purpose, such as
building and operating a
structure, while the
landowner (lessor) retains
ownership of the land

Question 6

lease
term

Answer 6

The duration for which a
lease agreement is valid and
in effect

Question 7

leased fee
estate

Answer 7

he property owner’s interest
in a property leased to
another party, entitling them
to receive rental payments

Question 8

leasehold
estate

Answer 8

The tenant’s right to possess
and use a property under a
lease agreement for a
specific period.

Question 9

lessee

Answer 9

The person or entity that
rents or leases property from
a lessor.

Question 10

lessor

Answer 10

The person or entity that
owns a property and grants
another party the right to use
it through a lease agreement

Question 11

net lease

Answer 11

lease agreement where the
tenant pays a base rent plus
additional expenses such as
property taxes, insurance,
and maintenance costs

Question 12

percentage
lease

Answer 12

lease agreement
commonly used in
commercial real estate
where the tenant pays a base
rent plus a percentage of
their gross sales.

Question 13

specific
performance

Answer 13

legal remedy where a
court orders a party to
perform a specific action as
outlined in a contract, such
as fulfilling the terms of a
lease agreement.

Question 14

subletting

Answer 14

tenant rents out all or
part of their leased property
to another party, known as a
subtenant, while still
retaining some interest in the
property.

Question 15

Uniform
Residential
Landlord and
Tenant Act

Answer 15

model law that
standardizes the rights and
responsibilities of landlords
and tenants in residential
rental properties, aiming to
protect both parties and
promote fairness in landlord-
tenant relationships.

Question 16

leased fee estate

Answer 16

A lease agreement commonly used in commercial real estate where the tenant pays a base rent plus a percentage of their gross sales.

Question 17

percentage lease

Answer 17

The property owner’s interest in a property leased to another party, entitling them to receive rental payments.

Question 18

What is one important difference between a sublease and a lease assignment?

Answer 18

In a sublease, the original tenant retains primary responsibility for performance of the original lease contract

Question 19

When an owner leases her property, she temporarily relinquishes the right to

Answer 19

occupy the property

Question 20

An owner leases a property to a business in exchange for rent. The tenant is required to pay all operating expenses as well. This is an example of a

Answer 20

net lease

Question 21

Under the Uniform Residential Landlord and Tenant Act, if a lease does not state a clear expiration date, the lease is regarded as

Answer 21

a tenancy from period-to-period

Question 22

Among a landlord’s primary obligations in a lease is

Answer 22

providing required building support and services

Question 23

A landlord generally has the right to enter the leased premises

Answer 23

for specified reasonable purposes

Question 24

A tenant transfers a portion of the leasehold interest to another party. The document that accomplishes this transfer is a(n)

Answer 24

sublease

Question 25

Which of the following happens when a leased property is sold?

Answer 25

The buyer acquires title subject to the lease

Question 26

A tenant vacates the premises and declares the lease canceled because the landlord has made the premises uninhabitable

Answer 26

constructive eviction

Question 27

The type of lease in which the tenant pays rent based on income generated at the leased premises is a(n)

Answer 27

percentage lease