CHAPTER 8 QUIZ LEASING AND PROPERTY MANAGEMENT Flashcards
What is the term for a legal contract created when a property owner enters into an agreement with a tenant, giving the tenant the right to occupy and use real property, subject to terms and conditions?
Lease
Who must sign a lease to make it valid?
The tenant and the landlord, or their authorized agent
When the lessee (tenant) signs the lease, what contract element is satisfied?
Acceptance
Lease contracts are used for…?
Both commercial and residential real estate
When specific improvement provisions are included in a lease, giving the tenant the right to improve the property, they are sometimes referred to as…?
Leasehold improvements
Leasehold improvements allow the tenant to make improvements to the property. The remaining answer choices are not provisions found in a lease.
Which of the following repairs is the landlord not required to make under the covenant of habitability?
Repair a tenant’s intentional damage to a wall
Under which of the following circumstances can a landlord be absolved of their responsibility to provide a habitable dwelling unit?
None of the answer choices provided are correct.
BThe tenant signed away the requirement through the lease.
CThe tenant inspected the unit before moving in and didn’t find anything wrong.
DThe landlord inspected the unit before moving in and didn’t find anything wrong.
Which of the following occurs when the landlord hasn’t upheld their end of the lease agreement resulting in the tenant not being able to occupy the leased property?
Constructive eviction
Under which of the following scenarios is a landlord generally entitled to enter a leased premises?
All of the answer choices provided are correct
BTo conduct required inspections
CTo make repairs
DTo show the unit to prospective tenants
When someone contracts with a property owner to lease real estate from them, one of the benefits they are getting is the right to possess the unit or parcel being leased. This is known as the right of?
Possession
Under this type of lease, the landlord is responsible for paying all of the costs of operating and maintaining the property, including real estate taxes?
Gross lease
If a tenant agrees to pay rent, property taxes and insurance premiums, what type of lease do they have?
Double net lease
When the tenant pays rent, maintenance, property taxes and insurance, they have this type of lease?
Triple net lease
Which of the following is not a type of net lease?
Quadruple net lease
For which of the following lease terms might you find in a ground lease?
99-year lease
Ground leases are typically for very long periods of time. A 99-year lease term is very common in a ground lease.
Which of these tenants is least likely to want to enter into a ground lease?
Independent insurance agent
Long-term tenants will most likely enter into a ground lease. An independent contractor, including an insurance agent, do not need long-term leases.
When an oil and gas lease is set to expire, but drilling is underway, what usually happens?
The lease will remain in effect
When a commercial tenant in a strip mall signs a double net lease, how is the amount of property taxes and insurance they pay calculated?
Prorated based on the size of the space they are renting
What document establishes the guidelines for the agency relationship between a property manager and the property owner(s)?
The formal management agreement
Cheryl is preparing a management agreement for a new client. What information can she use in the property description?
A legal description from the recorded property deed.
In order to comply with federal regulations, ………… are responsible for reporting known hazards, such as radon in lead paint, to …………, and remediating any issues discovered after the agreement is signed.
owner(s), property manager
Which fee typically covers basic services, like accounting, reporting, and tenant screening?
The management fee
Which of the following is incurred when a property owner spends money to upgrade a building in an effort to add value and/or extend the useful life of the building?
Capital expense
Money set aside by a property owner for long-term capital expenditures to a property is known as the…?
Capital reserve budget
What does a leasehold estate entitle a tenant to do?
Temporarily possess, occupy and use real estate
What term describes money a tenant pays up front, but gets back at the end of the lease term if the property is returned in substantially the same condition?
Security deposit
Under an estate at sufferance, the landlord could go to court to have a trespassing tenant evicted. What is another possible remedy?
Accept the tenant for another similar lease term
What is the usual effect of an estate at will tenant committing waste against the property (whether intentional or not)?
The estate at will is terminated
What is the term for the tenant in a leasehold estate?
Lessee
If the language of an estate at will lease says tenancy continues at the will or desire of the tenant, under what circumstances can the landlord terminate the lease?
The landlord may not be able to terminate the lease
