Chapter Seven - Real Estate Leases Flashcards
16 Questions
A lease contract is best described as
a. a temporary transfer of legal title.
b. an instrument of conveyance of limited title.
c. a conveyance of a possessory interest.
d. a title conveyance in exchange for rent.
c. a conveyance of a possessory interest.
When a tenant acquires a leasehold estate through a lease, what does the property owner acquire?
a. A freehold estate
b. A reduced leasehold estate
c. A leasehold estate
d. A leased fee estate
d. A leased fee estate
When an owner leases her property, she temporarily relinquishes the right to
a. transfer the property.
b. encumber the property.
c. occupy the property.
d. maintain the property.
c. occupy the property.
Which of the following happens when a leased property is sold?
a. The buyer acquires title subject to the lease.
b. The lease is cancelled.
c. The lease expires within thirty days unless renewed.
d. A new lease is automatically executed.
a. The buyer acquires title subject to the lease
A landlord and tenant complete a one-year lease. The following week, the landlord dies. Which of the following is true?
a. The lease is cancelled and must be re-written.
b. The tenant must continue to abide by all lease terms.
c. The tenant may annul the lease at his or her option.
d. The landlord’s heirs may cancel the lease at their option.
b. The tenant must continue to abide by all lease terms.
If a lease does not state a specific ending date, when does it terminate?
a. Immediately, since it is an invalid lease
b. After one year
c. When either party gives proper notice
d. Whenever the property is sold
c. When either party gives proper notice
In accordance with the Statute of Frauds,
a. leases in excess of one year must be recorded to be enforceable.
b. oral leases are not enforceable.
c. a five-year lease must be in writing to be enforceable.
d. an unwritten lease is fraudulent.
c. a five-year lease must be in writing to be enforceable.
What is one important difference between a sublease and a lease assignment?
a. In an assignment, responsibility for the original lease is transferred completely to the assignee.
b. In a sublease, the original tenant retains primary responsibility for performance of the original lease contract.
c. A sublease does not convey any of the leasehold interest.
d. A sublease conveys the entire leasehold interest.
b. In a sublease, the original tenant retains primary responsibility for performance of the original lease contract.
Which of the following lease types conveys rights other than the rights to exclusive use and occupancy of the entire property?
a. A rights lease
b. A percentage lease
c. A gross lease
d. A net lease
a. A rights lease
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
a. proprietary lease.
b. percentage lease.
c. gross lease.
d. net lease.
d. net lease.
The percentage lease is most often used by
a. industrial landlords.
b. retail landlords.
c. residential landlords.
d. office landlords.
b. retail landlords.
Which of the following summarizes the general terms of a ground lease?
a. The landlord sells the ground to another, then leases it back.
b. A tenant buys the landlord’s ground, then leases the improvements.
c. The landlord leases the ground floor of the building to a commercial tenant.
d. The tenant leases the ground from the landlord and owns the improvements.
d. The tenant leases the ground from the landlord and owns the improvements.
Among the usual remedies available to the injured party if tenant or landlord defaults on the terms of a lease is the right to
a. sue to compel performance of the contract.
b. enter a lien against the other’s estate.
c. lock the other party out of the premises.
d. apply the security deposit to legal expenses.
a. sue to compel performance of the contract.
A lease automatically terminates under which of the following circumstances?
a. The tenant fails to pay rent.
b. The leased property is foreclosed.
c. The tenant goes out of business.
d. The landlord cancels the lease.
b. The leased property is foreclosed.
One of the aims of the Uniform Residential Landlord and Tenant Act is to
a. create a standard residential lease for use nationwide.
b. force states to enact tenants’ rights laws.
c. establish uniform rental rates for each type of property.
d. discourage the use of unfair and overly complex leases.
d. discourage the use of unfair and overly complex leases.
