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AZ Real Estate Agent License 2020 > Estates 11 > Flashcards

Estates 11 Flashcards

1
Q

When the Grantor “Will Re-Aquire” Property, what is he called?

A

Reverter -

When the Grantor “Will Re-Aquire” Property, He is Called a Reverter

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2
Q

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

Chap 11

.

A

Estate -

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

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3
Q

What are the two categories of Estates?

A

Estates (2 Categories) -

  1. Freehold Estate: (Fee Simple Absolute, Defeasible Simple, Life Estates)
  2. Leasehold Estate: (Estate for Years, Period to Period, Estate at Will - Permission, Estate at Sufference - Tenant Holding Over Wrongfully)

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4
Q

Which 3 types of Estates have an Ownership Interest?

A

Freehold Estates (Ownership Interest) -

Fee Simple Absolute: Highest Form, All Bundle of Rights Forever.

Deafeasible Fee Simple: (Conditional Ownership), if Violated Reverts Back to Grantor (reverter)

Life Estates - Interest Created by Life of a Certain Person.

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5
Q

Which Type of Estate Gives Right to Possess and Use of Another’s Property.

A

Leasehold Estate -

Gives Right to Possess and Use of Another’s Property.

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6
Q

What are the 3 Types of Freehold Estates?

A

Freehold Estates (Types) -

  1. Fee Simple Absolute (Highest Form of Ownership-Bundle of Rights Forever)
  2. Defeasible Fee Simple (Conditional)
  3. Life Estates (for Life of Certain Person)

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7
Q

Which Type of Freehold Estate gives Highest Form of Ownership, Absolute Ownership, and has all Bundle of Rights Forever?

A

Fee Simple Absolute-

Gives Highest Form of Ownership, Absolute Ownership and all Bundle of Rights Forever.

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8
Q

Which Type of Freehold Estate gives Conditional Ownership, and Reverts Back to Grantor (Reverter), if violated?

A

Defeasible Fee Simple -

Conditional Ownership, if violated Reverts Back to Grantor (Reverter).

  1. Fee Simple Determinable (If Condition Occurs Ownership Ends)
  2. Fee Simple Subject To Condition Subsequent (Condition Occurs Ownership May End)
  3. Fee Simple Subject To Executory Limitation (Passes to 3rd Party)

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9
Q

Which Type of Freehold Estate gives Ownership Interest to a Life Tenant?

A

Life Estates -

Gives Ownership Interest to Certain Person (Life Tenant) for Their Life.

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10
Q

Conv_______ L__ Estate -

Estate created by One Person for Another Person (Life Tenant).

  1. Interest Cannot be “Willed”
  2. Waste Cannot be Committed.
A

Conventional Life Estate -

Estate created by One Person for Another Person (Life Tenant).

  1. Interest Cannot be “Willed”
  2. Waste Cannot be Committed.

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11
Q

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

A

Estate -

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

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12
Q

Deliberate Damage to Property by Life Tenant is?

A

Waste -

Deliberate Damage to Property by Life Tenant

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13
Q

“Interest” held by Grantor (Reverter) by which Grantor will Re-Aquire Interest is called?

A

Reversionary Interest (Estate in Reversion) -

“Interest” held by Grantor (Reverter) by which Grantor will Re-Aquire Interest.

Example: Son creates life estate for Mom and at Mom’s death interest “reverts back” to Son.

  1. Mom holds a life estate (Warranty Deed)
  2. Son holds a Reversionary Interest (Estate in Reversion)

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14
Q

Life Estate example, What Type of “Interest” Does Son hold If:

  1. Mom holds Life Estate
  2. Son is the Grantor Which will Re-Aquire Estate.
A

Reversionary Interest (Estate in Reversion)

Life Estate example where:

  1. Mom holds Life Estate
  2. Son is the Grantor Which will Re-Aquire Estate.

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15
Q

An Interest held by a Another Person Than the Grantor by which they will Acquire a Greater Interest in the Future (ex: death of grantor)?

A

Remainder Interest (Person is: Remainderman) -

An Interest held by a Another Person Than the Grantor by which they will Acquire a Greater Interest in the Future (example: death of grantor).

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16
Q

Freehold Estates (Ownership Interest) -

F__ S______ Ab______: Highest Form, All Bundle of Rights Forever.

D________ F__ S______: (Conditional Ownership), If Violated Reverts Back to Grantor (reverter)

L___ Es_____ - Interest Created by Life of a Certain Person.

A

Freehold Estates (Ownership Interest) -

Fee Simple Absolute: Highest Form, All Bundle of Rights Forever.

Deafeasible Fee Simple: (Conditional Ownership), if Violated Reverts back to Grantor (reverter)

Life Estates - Interest Created by Life of a Certain Person.

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17
Q

Estate in Rem_____ (Rem_______ In______)

Son created Life Estate for Mom. Son is Grantor but Holds No Interest. Sister will Acquire Interest upon Mom’s death. What interest will Sis hold?

A

Estate in Remainder (Remainder Interest) - Sis holds this interest.

Life Estate where: Son creates Life Estate for Mom. Son is Grantor but holds No Interest. Sister will acquire interest upon Mom’s death.

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18
Q

Life Estate where Mom conveys Fee Simple Title to Son, and holds Life Estate for Herself.

What type of interest does Son hold?

A

Son holds - Remainder Interest (Estate in Remainder)

Life Estate where Mom conveys Fee Simple Title to Son, and holds Life Estate for Herself. Son will hold Greater Interest in Future

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19
Q

Type of Estates that gives Right to Possess and Use Another’s Property. The Rights are Evidence by Lease (Demise)?

A

Leasehold Estates (Conditional Ownership) -

Types of Estates that gives Right to Possess and Use of Another’s Property . The Rights are Evidence by Lease (Demise)

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20
Q

Leasehold Estates Tenancies -

  1. Estate for _____ (Tenancy) - Ending Date and No Notice Needed
  2. Estate from _______ - Indefinite Period and *****NOTICE NEEDED******
  3. Estate at ______ - Unspecified Permission and No Notice Needed
  4. Estate of _________- Hold-over after Expiration
A

Leasehold Estates Tenancies -

  1. Estate for Years (Tenancy) - Ending Date and No Notice)
  2. Estate from Period to Period - Indefinite Period ****NOTICE NEEDED*****
  3. Estate at Will - Unspecified Permission/No Notice
  4. Estate of Sufferance - Hold-over after Expiration

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21
Q

Which Leasehold Estate has a Ending Date, but Requires “No Notice” to Terminate?

A

Estate For Years Tenancy (ENDS) -

  1. Ending Date (Specified Time)
  2. No Notice - to terminate

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22
Q

Which Leasehold Estate has an Indefinite Duration, and REQUIRES NOTICE to terminate?

A

Estate Period to Period -

  1. Indefinite Duration (No End Date) - Month to Month, Year to Year
  2. REQUIRED ****NOTICE NEEDED****

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23
Q

Which Leasehold Estate gives

  1. Permission/Privilege to Use
  2. Unspecified Time Frame
  3. No Notice** to **Terminate
A

Estate at Will

  1. Permission/Privilege to Use
  2. Unspecified Time Frame
  3. No Notice to Terminate

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24
Q

H________

Tenant Remains on Property After Lease Expires is What Type of Tenancy?

A

Holdover Tenancy -

Tenant Remains on Property After Lease Expires

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25
Q

A Lease in which the Lessee (Becomes Sub-Lessor) by Entering into a “Separate Lease” with Another Lessee (Who Become Sub-Lessee)

What Type of Lease

A

Sublease (Sandwich Lease) -

A Lease in which the Lessee (becomes Sub-Lessor) by Entering into a “Separate Lease“ with Another Lessee (Who Becomes Sub-Lessee).

Sub-Lessee Pays Rent to Lessee/Sub-Lessor, Who Pays Landlord/Lessor.

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26
Q

A Lease where the Lessee (Assignor) Transfers All Rights to Lease to 3rd party (Assignee)

3rd Party Takes Over Lease, and Pays Lessor Directly

What is This Type of Lease?

A

Assignment of Lease -

A Lease where the Lessee (Assignor) Transfers All Rights to Lease to 3rd party (Assignee)

3rd PartyTakes Over Lease and Pays Lessor Directly

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27
Q

Liability in a Sublease (Sandwich)

  1. Sandwich - Sub-Lessee (2nd Lessee) Liable to Orig. Lessee (Sub-Lessor)
    * Liable to Landlord/Lessor - ______
  2. Assignment - Assignor-Lesee and Assignee (3rd Party) -
    * Liable to Landlord/Lessor - ______
A

Liability in a Sublease (Sandwich)

  1. Sandwich - Sub-Lessee (2nd Lessee) Liable to Orig. Lessee (Sub-Lessor)
    * Liable to Landlord/Lessor - Orig Lessee(Sub-Lessor)
  2. Assignment - Assignor-Lessee and Assignee (3rd Party)
    * Liable to Landlord/Lessor - Both

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28
Q

Liability in Assignment -

  1. Assignor Re-Asigns Lease to (3rd Party)
  2. Assignee/Sub-Lessee (Takes of Over Lease) and PAYS LANDLORD RENT
  3. Who is Liable to Landlord for non-payment?
A

Liability in Assignment -

  1. Assignor Re-Asigns Lease to (3rd Party)
  2. Assignee/Sub-Lessee (Takes of Over Lease) and PAYS LANDLORD RENT
  3. Liable to Lessor/Landlord - Both
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29
Q

Rent stated in Lease is called?

A

Contract Rent -

Rent stated in Lease

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30
Q

Current Market Rent that could be obtained is called?

A

Economic Rent -

Current Market Rent that could be obtained

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31
Q

Lease in which the “Economic Rent is higher” than Contract Rent

A

Positive Leasehold -

Lease in which the “Economic Rent is higher” than Contract Rent.

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32
Q

Freehold Estates (Ownership Interest) -

  1. Fee Simple Ab_______: Highest Form, Bundle of Rights ForeverV
  2. D_________ Fee Simple: (Conditional Ownership), If Violated Reverts Back to Grantor (Reverter)
  3. L____ Estates - Interest Created by Life of a Certain Person.
A

Freehold Estates (Ownership Interest) -

  1. Fee Simple Absolute: Highest Form, Bundle of Rights Forever.
  2. Deafeasible Fee Simple: (Conditional Ownership), If Violated Reverts Back to Grantor (Reverter)
  3. Life Estates - Interest Created by Life of a Certain Person.

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33
Q

Lease in which the “Contract Rent is higher” than the Economic rent.

A

Negative Leasehold -

Lease in which the “Contract Rent is higher” than the Economic Rent

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34
Q

T______ Im_________

Alterations or Improvements to a “Leased Space“ to Configure the Space for the Tenant’s Needs. Made by Owner or Leaseholder to Make it More Appealing or Useful for Tenant.

A

Tenant Improvements -

Alterations or Improvements to a “Leased Space“ to Configure the Space for the Tenant’s Needs. Made by Owner or Leaseholder to Make it More Appealing or Useful for Tenant.

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35
Q

Made up of Roof, Walls, Floor, Windows, and Doors. Everything that Separate the Inside of a Building From the Outside!

A

Building Shell -

Made up of Roof, Walls, Floor, Windows, and Doors. Everything that Separate the Inside of a Building From the Outside!

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36
Q

C_______ of Oc_______ - Gov Cert

Government Certificate stating Commercial Building is in Compliance with “Building Codes“ and “Suitable for Occupancy“

A

Certificate of Occupancy - Gov Cert

Government Certificate stating Commercial Building is in Compliance with “Building Codes“ and “Suitable for Occupancy“

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37
Q

(CAMs) Com___ Area M________ Charges -

Fees charged to Commercial Tenants for Parking Lots, Walkways, Area Lighting etc.

A

(CAMs) Common Area Maintenance Charges -

Fees charged to Commercial Tenants for Parking Lots, Walkways, Area Lighting etc.

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38
Q

Ex_____ St___ - (Tenant Pays Increase Tax and Utilities)

  1. Landlord’s Operating Expenses - This Provision Limits
  2. Tenant Pays Increases In - Ta__, He____/Co_____.
A

Expense Stop - (Tenant Pays Increase Tax and Utilities)

  1. Landlord’s Operating Expenses - This Provision Limits
  2. Tenant Pays Increases In - Taxes, Heating/Cooling.

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39
Q

Development Project by which Developer Completes Building, and it becomes “Move in Ready”

A

Turnkey Project -

Development Project by which Developer Completes Building, and it becomes “Move in Ready”

Chap 11

40
Q

7 Ways to Terminate a Lease -

  1. Sur_____ and Acc_______
  2. Exp_____ of Term (Estate for Years - Ends)
  3. Em_____ Dom____
  4. Actual Ev_____ (Breach of Tenant)
  5. Constructive Ev_____ (Breach of Landlord)
  6. Dest______ of Property
  7. Foreclosure of Mor______ (Protect Tenants At Forclosure Act - 90 days)
A

7 Ways to Terminate a Lease -

  1. Surrender and Acceptance
  2. Expiration of Term (Estate for Years - Ends)
  3. Eminent Domain
  4. Actual Eviction (Breach of Tenant)
  5. Constructive Eviction (Breach of Landlord)
  6. Destruction of Property
  7. Foreclosure of Mortgage (Protect Tenants At Forclosure Act - 90 days)

Chap 11

41
Q

Surr______ and A________ -

Mutual Agreement to End Lease is Called

A

Surrender and Acceptance -

Mutual Agreement to End the Lease

Chap 11

42
Q

Estate for Years how does this terminate?

A

Estate Tenancy for Years (Ends) -

Ending Date (Expiration of Term) Terminates Lease - No Notice

Chap 11

43
Q

Eminent Domain - Condem_______ Clause

Clause that “Cancels Lease” if Eminent Domain is exercised. (Usually found in commercial lease).

A

Eminent Domain - Condemnation Clause

Clause that “Cancels Lease” if Eminent Domain is exercised. (Usually found in commercial lease).

Chap 11

44
Q

A_____ E_______ - (Tenant Breach)

  1. When Tenant fails to Perform Obligations,
  2. Lessor Sues for Possession.
A

Actual Eviction - (Tenant Breach)

  1. When Tenant fails to Perform Obligations,
  2. Lessor Sues for Possession.

Chap 11

45
Q

C________ E_______ - (Landlord Breach)

When Landlord fails to Perform Obligations. Tenant can Terminate and Sue for Damages.

A

Constructive Eviction - (Landlord Breach)

When Landlord fails to Perform Obligations. Tenant can Terminate and Sue for Damages.

Chap 11

46
Q

Can Destruction of Property Terminate a Lease?

A

Yes -

Destruction of property can terminate a lease

Chap 11

47
Q

“Protecting Tenants at Foreclosure Act” -

  1. Give Tenants Min of ___ days and Notice to Vacate OR
  2. Honor Remaining Term of Lease - if Greater than 90 days.
A

“Protecting Tenants at Foreclosure Act” -

  1. Give Tenants Min of 90 days and Notice to Vacate. OR
  2. Honor Remaining Term of Lease if Greater than 90 days.

Chap 11

48
Q

How Does Death Effect a Lease or Sale of Property?

A

How Death Effects Lease/Sale of Property -

  1. Death (Lessor/Lessee) - Does Not Terminate!
  2. Sale of Property - Does Not Terminate

Chap 11

49
Q

Lessor’s Rights -

  1. Receives R___
  2. Rev________ Right (termination of lease)
A

Lessor’s Rights -

  1. Receives Rent
  2. Reversionary Right (termination of lease)

Chap 11

50
Q

Right of Q_____ En______ -

Use of Property without Inter_________ by Lessor or others Claiming Superior Title.

A

Right of Quiet Enjoyment -

Use of Property without Interference by Lessor or others Claiming Superior Title..

Chap 11

51
Q

Tr___ Fi______ - Operation of Biz

  1. Tenant’s Personal Property used in “Operation of Business”(Examples: Draperies, Machinery.)
  2. Must “Remove” before Termination of Lease.
A

Trade Fixtures - Operation of Biz

  1. Tenant’s Personal Property used in Operation of Business (Examples: Draperies, Machinery).
  2. Must “Remove” before Termination of Lease

Chap 11

52
Q

Ownership is created for Life of a Person, What is Holder Called?

A

Life Tenant -

When ownership is created for life of a person, that person is called a Life Tenant.

Chap 11

53
Q

Life Estate for Mom and at Mom’s Death will Revert Back to Grantor (Son), is What Type of Estate?

A

Estate in Reversion -

Life Estate for Mom and at Mom’s Death will Revert Back to Grantor (Son)

Chap 11

54
Q

Trade Fixtures - Biz Operations

  1. Tenant’s Personal Property used in “Operation of Business.” Ex: Draperies, Machinery
  2. Must “R_____” before Termination
A

Trade Fixtures - Bus Operations

  1. Tenant’s Personal Property used in “Operation of Business” Ex: Draperies, Machinery.
  2. Must “Remove” before Termination

Chap 11

55
Q

Grantor Creates Life Estate for Mom, and After Her Death it Reverts to Sister. What type of Estate?

A

Estate In Remainder -

Grantor Creates Life Estate for Mom, and After Her Death it Reverts to Sister. Sister also known as Remainderman.

Chap 11

56
Q

When an Estate is created for One Person, but Reverts to Another, Other Than Grantor. That Person is Called?

A

Remainderman -

When an Estate is created for One Person, but Reverts to Another, Other Than Grantor.

Chap 11

57
Q

Another word for Lease is?

A

Demise -

Another word for Lease

Chap 11

58
Q

Another word for Landlord

A

Lessor -

Another word for Landlord

Chap 11

59
Q

Another word for Tenant

A

Lessee -

Another word for Tenant

Chap 11

60
Q

Estate at S__________ -

Existing Lease Terminated, but “Tenant is “Holding Over” Wrongfully. Rent Neither Paid/Accepted.

A

Estate at Sufferance -

Existing Lease Terminated, but “Tenant is “Holding Over” Wrongfully. Rent Neither Paid/Accepted.

Chap 11

61
Q

F______ Entry and D______ Action

A Court Proceeding used to Evict a Tenant for Breach of One or More Provisions of the Lease Agreement. Valid Reasons for Eviction May Include:

  1. Failure to Pay Rent on time
  2. Harboring Pets or Persons “Not Authorized” to Reside at the Premises Under the Lease
  3. Illegal or Criminal Activity on the Property
A

Forceble Entry & Detainer Action -

A Court Proceeding used to Evict a Tenant for Breach of One or More Provisions of the Lease Agreement. Valid Reasons for Eviction May Include:

  1. Failure to Pay Rent on time
  2. Harboring Pets or Persons “not authorized” to Reside at the Premises Under the Lease
  3. Illegal or Criminal Activity on the Property

Chap 11

62
Q

Gr___ Lease - (Lessor Pays Expenses)

  1. Rent is a “Fi___ Amount” For Tenant.
  2. Lessor Pays ALL “Property Ex_____.”

Gross - Without Deduction

A

Gross Lease - (Lessor Pays Expenses)

  1. Rent is a “Fixed Amount” For tenant.
  2. Lessor Pays ALL “Property Expenses.”

Gross - Withiout Deduction

Chap 11

63
Q

Net Lease aka Triple Net Lease - (Tenant Pays Expenses)

Tenant Pays:

  1. Fixed Am_____ Rent, plus
  2. Property Expenses, Utilities, Real Estate T____, Ins_____ Premiums, Maintenance

Landlord Pays:

  1. Mor_____ (Debt Service)
A

Net Lease aka Triple Net Lease - (Tenant Pays Expenses)

Tenant Pays:

  1. Fixed Amount Rent, PLUS
  2. Property Expenses, Utilities, Real Estate Taxes, Insurance Premiums, Maintenance

Landlord Pays:

  1. Mortgage (Debt Service)

Chap 11

64
Q

Percentage Lease - (% of Gross Sales Paid)

  1. Base Minumum Rent paid, plus % of Gr___ S___ Volume
  2. Common: Retail Space Ex: Shopping Malls
A

Percentage Lease - (% of Gross Sales Paid)

  1. Base Minimum Rent paid, plus % of Gross Sales Volume
  2. Common: Retail Space Ex: Shopping Malls

Chap 11

65
Q

Lease for “Land Only”

A

Ground Lease -

Lease for “Land Only”

Chap 11

66
Q

Sale Leaseback - (Rent Tax Deductable)

Seller sells Property to Investor, which Leases Property Back to S_____.

Benefits to Seller (Tenant)

  1. Frees up Working Ca_____
  2. Rent - Tax Ded______

Disadvantages to Seller (Tenant)

  1. No More Dep______ or Ap______ for Taxes
A

Sale Leaseback - (Rent Tax Deductable)

Seller sells Property to Investor, which Leases Property Back to Seller.

Benefits to Seller (Tenant)

  1. Frees up Working Capital
  2. Rent - Tax Deduction

Disadvantages to Seller (Tenant)

  1. No More Depreciation or Appreciation for Taxes

Chap 11

67
Q

Grad______ Lease - (Rent Increase/Decrease)

Lease with an Es______ Clause that calls for Increase/Decreases in Rent at specified intervals.

A

Graduated Lease - (Rent Increase/Decrease)

Lease with an Escalator Clause that calls for Increase/Decreases in Rent at specified intervals.

Chap 11

68
Q

Es________ Clause -

  1. Lease or Contract: Guarantees a Change in the Agreement Price Once a Particular Factor Beyond Control of Either Party Affecting the Value has Been Determined (Ex: Inflation)
  2. Purchase Contract: Buyer Will Pay a Certain Amount of Money Above the Hi_____ Offer the Seller Receives.
  3. Commercial Leases: Rent Increases by % and Tide to Consumer Price Index. Operating Expenses Increase by Annual Budget Basis and Collected as Rent Increases.
A

Escalator Clause -

  1. Lease or Contract: Guarantees a Change in the Agreement Price Once a Particular Factor Beyond Control of Either Party Affecting the Value has Been Determined (Ex: Inflation)
  2. Purchase Contract: Buyer Will Pay a Certain Amount of Money above the Hi_____ Offer the Seller Receives.
  3. Commercial Leases: Rent Increases by % and Tide to Consumer Price Index. Operating Expenses Increase by Annual Budget Basis and collected as Rent Increases.

Chap 11

69
Q

Lease with Rent is Tied to an Index, such as Consumer Price Index. Can Go Up or Down.

A

Index Lease -

Lease with Rent is Tied to an Index, such as Consumer Price Index. Can Go Up or Down.

Chap 11

70
Q

An____ Lease - (Major Tenant)

Lease with a Major Tenant such as a “Dep______ Store or Supermarket.”

A

Anchor Lease - (Major Tenant)

Lease with a Major Tenant such as a “Department Store or Supermarket.”

Chap 11

71
Q

Gift of Personal Property through a Will

A

Bequest (Legacy) -

Gift of Personal Property through a Will

Chap 11

72
Q

C_______

The Life Estate that a Husband has in the Estate of his Deceased Wife

A

Curtesy -

The Life Estate that a Husband has in the Estate of his Deceased Wife

Chap 11

73
Q

B______ (Legacy)

Gift of Personal Property through a “Will.”

A

Bequest (Legacy) -

Gift of Personal Property through a “Will.”

Chap 11

74
Q

L____ O______ -

Lease with Option to Buy or Re-Lease. Option is a Right to Buy or Lease a Property within “Specified Period,” for a “Specified Price” and “Terms.”

A

Lease Option -

Lease with Option to Buy or Re-Lease. Option is a Right to Buy or Lease a Property within “Specified Period,” for a “Specified Price” and “Terms.”

Chap 11

75
Q

B______ (Legacy)

Gift of Personal Property by Will

A

Bequest (Legacy) -

Gift of Personal Property by Will

Chap 11

76
Q

(CAMs) Common Area Maintenance Charges -

Fees Charged to Commercial Tenants for P____ Lots, Walkways, Area Lig____ etc.

A

(CAMs) Common Area Maintenance Charges -

Fees Charged to “Commercial Tenants” for Parking Lots, Walkways, Area Lighting etc.

Chap 11

77
Q

Trade Fixtures - Biz Operations

  1. Tenant’s Pe______ Property used in “Operation of Business.” Ex: Draperies, Machinery
  2. Must “R_____” before Termination
A

Trade Fixtures - Biz Operations

  1. Tenant’s Personal Property used in “Operation of Business.” Ex: Draperies, Machinery
  2. Must “Remove” before Termination

Chap 11

78
Q

Ex______ S____ - (Tenant Increase Tax-Utilities)

  1. Landlord’s Op______ Ex_______ (Provision Limits Expenses)
  2. Tenant pays Increases in Taxes, and Utilities such as Heating/Cooling.
A

Expense Stop - (Tenant Increase Tax-Utilities)

  1. Landlord’s Operating Expenses (Provision Limits Expenses)
  2. Tenant pays Increases in Taxes, Utilities such as Heating/Cooling.

Chap 11

79
Q

Def_______ F____ S______ -

Conditional Ownership, if Violated Reverts Back to Grantor (Reverter).

A

Defeasible Fee Simple -

Conditional Ownership, If Violated Reverts Back to Grantor (Reverter).

  1. Fee Simple Determinable (If Condition Occurs Ownership Ends)
  2. Fee Simple Subject To Condition Subsequent (Condition Occurs Ownership May End)
  3. Fee Simple Subject To Executory Limitation (Passes to 3rd Party)

Chap 11

80
Q

Lease in a Cooperative in Which the Tenant has the Right to Rent a Particular Unit From a Corporation. (Usually In a Corporate Lease)

A

Proprietary Lease -

Lease in a Cooperative in Which the Tenant has the Right to Rent a Particular Unit From a Corporation. (Usually In a Corporate Lease)

Chap 11

81
Q

Section 8 Lease

“Federal R___ Subsidy Program” for Low-to-Moderate Inc____ Family that “Pays a Portion” of the Tenant’s Rent to the Landlord.

A

Section 8 Lease -

Federal Rent Subsidy Program for Low-to-Moderate Income Families that “Pays a Portion” of the Tenant’s Rent to the Landlord.

Chap 11

82
Q

Freehold/Lease Estates -

  1. Fee Simple - Hi_____ Own______
  2. Defeasible Fee Simple - Con_______ Ownership
  3. Life Estate - Interest for Life of Another P_____
  4. Leasehold Estate - Right to Pos_____ and Use of Another Property
A

Freehold/Lease Estates -

  1. Fee Simple - Highest Ownership
  2. Defeasible Fee Simple - Conditional Ownership
  3. Life Estate - Interest for Life of Person
  4. Leasehold Estate - Right to Possess and Use Another’s Property

Chap 11

83
Q

Types of Tile -

  1. Severalty - Sole and Separate
  2. Community - Property in Marriage (Heirs).
  3. CPWRS - Passes to Surviving spouse
  4. JTWRS - Passes to Surviving Joint Tenants - NO CORPS (Time Title Interest Possess)
  5. Tenants in Common - Undivided Interests, Heirs, (Possession)
A

Types of Tile -

  1. Severalty - Sole and Separate
  2. Community - Property in Marriage (heirs).
  3. CPWRS - Passes to Surviving spouse
  4. JTWRS - Passes to Surviving Joint Tenants - NO CORPS (Time Title Interest Possess)
  5. Tenants in Common - Undivided Interests, Heirs (Possession)

Chap 11

84
Q

Cur____ -

The Life Estate that a Husband has in the Estate of His Deceased Wife

A

Curtesy -

The Life Estate that a Husband has in the Estate of His Deceased Wife

Chap 11

85
Q

Ejectment -

Legal Proceeding to Regain Pos_____ of the Property for Breach of Lease …aka - Forcible En____ & Detainer Action. (Actual Eviction- Tenant Breach)

A

Ejectment -

Legal Proceeding to Regain Possession of the Property for Breach of Lease …aka - Forcible Entry & Detainer Action. This is Actual Eviction (Tenant Breach)

Chap 11

86
Q

Gift of Personal Property through a “Will.”

A

Bequest (Legacy) -

Gift of Personal Property through a “Will.”

Chap 11

87
Q

Ej________

The Proper Way to Remove a Person other than a Tenant Who is in Possession of Real Property.

A

Ejectment -

The Proper Way to Remove a Person other than a Tenant Who is in Possession of Real Property.

88
Q

(CAMs) C_____ A___ Main_____ Charges -

Fees charged to “Commercial Tenants” for Parking Lots**, **Walkways**, **Area Lighting etc.

A

(CAMs) Common Area Maintenance Charges -

Fees charged to “Commercial Tenants” for Parking Lots**, **Walkways**, **Area Lighting etc.

Chap 11

89
Q
  1. Right to Buy or Lease a Property within a Specified Period for a Specified Price and Terms.
  2. Holder of Option: May or May Not Choose to Exercise the Right.
  3. Only Binding on Optionor (Owner).
A

Option -

  1. Right to Buy or Lease a Property within a Specified Period for a Specified Price and Terms.
  2. Holder of Option: May or May Not Choose to Exercise the Right.
  3. Only Binding on Optionor (Owner).

Chap 11 (From Chap 3)

90
Q

In a Lease with an Option to Purchase, the Option is Enforceable by:

  1. Optionor
  2. Optionee
  3. Either Party
  4. Nether Party
A

In a Lease with an Option to Purchase, the Option is Enforceable by:

  1. Optionor
  2. Optionee
  3. Either Party
  4. Nether Party

Chap 11

91
Q

The BEST Example of a Percentage Lease Would be a Lease in Which the Rent was a Percentage of the Tenant’s

  1. Gross Income
  2. Net Income
  3. Net Receipts with a Minimum Rent
  4. Gross Receipts with a Minimum Rent
A

The BEST Example of a Percentage Lease Would be a Lease in Which the Rent was a Percentage of the Tenant’s

  1. Gross Income
  2. Net Income
  3. Net Receipts with a Minimum Rent
  4. Gross Receipts with a Minimum Rent

Chap 11

92
Q

A Tenant is Leasing a Property which the Tenant is Interested in Buying. The Owners are Not Sure They Want to Sell at this Time. What Type of Contract Would Give the Owners the Most Freedom.

  1. Option
  2. Purchase Contract
  3. Right of First Refusal
  4. Lease-Option
A

A Tenant is Leasing a Property which the Tenant is Interested in Buying. The Owners are Not Sure They Want to Sell at this Time. What Type of Contract Would Give the Owners the Most Freedom.

  1. Option
  2. Purchase Contract
  3. Right of First Refusal
  4. Lease-Option
93
Q

A Tenant Rents a Commercial Space and Installs a Range Above an Oven used in the Tenant’s Business. The Range Hood is an:

  1. Improvement to the Property and Part of Real Estate
  2. Fixture which is Permanently attached and Cannot be removed
  3. Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration
  4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood
A

A Tenant Rents a Commercial Space and Installs a Range Above an Oven used in the Tenant’s Business. The Range Hood is an:

  1. Improvement to the Property and Part of Real Estate
  2. Fixture which is Permanently attached and Cannot be removed
  3. Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration
  4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood

Chap 11

94
Q

B Sold a Property to Y and Reserved a Life Estate for Himself. Y Recorded the Deed. B sold his Life Estate to D who Recorded the Deed. Y Demanded the Property Pass to Her in Fee Simple Title Immediately. In this case:

  1. Y’s claim is invalid beacuse B controls his interest while alive
  2. Y’s claim is valid
  3. Neither Y nor B have a claim to this property
  4. B needed to obtain Y’s permission to make the transfer.
A

B Sold a property to Y and reserved a Life Estate for himself. Y recorded the deed. B sold his Life Estate to D who recorded the deed. Y demanded the property pass to her in Fee Simple Title immediately. In this case:

  1. Y’s claim is invalid beacuse B controls his interest while alive
  2. Y’s claim is valid
  3. Neither Y nor B have a claim to this property
  4. B needed to obtain Y’s permission to make the transfer.
95
Q

Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:

  1. Tenants must receive at lease 90 Days Notice to Vacate
  2. Leases that were in force prior to the beginning of Foreclosure must be honored
  3. Tenants who are evicted must receive Cash for Keys
  4. The Act does not Protect Commerical Tenants
A

Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:

  1. Tenants must receive at lease 90 Days Notice to Vacate
  2. Leases that were in force prior to the beginning of Foreclosure must be honored
  3. Tenants who are evicted must receive Cash for Keys
  4. The Act does not Protect Commerical Tenants

Chap 11

AZ Real Estate Agent License 2020 (23 decks)

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