Estates/Leasehold/Freehold/Environmental Flashcards
Demise is aka a ?
Lease
What must a property manager deliver to the tenant when renting a residential property that was constructed prior to 1978?
a. lead paint addendum
b. copy of the federal Fair Housing Law
c. an environmental site assessment
d. List of the last three tenants
A. lead paint addendum
Which of the following is commonly found in minute airborne particles when it becomes friable? (key word friable)
a. Radon
b. Asbestos
c. Carbon monoxide
d. Urea-Formaldehyde
B. Asbestos
Mold can be associated with:
a. airtight windows
b. insulation
c. inferior grade building materials
d. low moisture conditions
A. airtight windows
A property is designated as being within a Superfund site, but the property receives water from wells that are NOT contaminated. The broker must:
a. not disclose that it is within a Superfund site
b. make the disclosure but can provide info about the water
c. not make the disclosure because the broker represents the seller
d. refer the buyer to the EPA
B. make the disclosure but can provide info
Under the CERCLA with regards to the cleanup of toxic waste spills, the current and previous owners have what type of responsibility?
a. single liability
b. several liability
c. strict liability
d. fractional liability
C. Strict Liab…
A method used to treat asbestos is called:
a ventilation
b encapsulation
c capping
d evaporation
B. Encapsulation
FREEHOLD vs. LEASEHOLD
FREEHOLD Estates
- Lasts for an indeterminable length of time
- May be passed on to the owner’s heirs
- Seller/Giver of Interest: Grantor
- Buyer/Receiver of Interest: Grantee
LEASEHOLD Estates
- Lasts for a determinable length of time
- Gives tenant only the right of possession
-
Owner/Landlord: Lessor
- Tenant: Lessee
J conveys a life estate to his disabled brother, R, for R’s lifetime. When the life estate terminates, the ownership goes to J’s adult daughter, A.
- This a life estate with a remainder or a reversionary interest?
- When does the life estate terminate?
- The life tenant is?
- The person w/ the remainder interest is?
- remainder interest
- when R dies
- R is the life tenant
- A has remainder interest
A man willed his residence to his widow. Upon her death, it was to go to two of his three sons. The widow rec’d
a. life estate
b. partial estate
c. remainder estate
d. leasehold
A.
Which element is not a characteristic of fee simple absolute ownership?
a. reversion to the grantor
b. ability to will
c. indefinite duration
d. ability to transfer
A.
The interest of a grantor who gives an interest w/ the expectation of getting it back is a
a. remainder estate
b. life estate
c. reversionary estate
d. defeasible estate
C.
The greatest ownership right an individual can have is called
a. leasehold
b. life estate
c. fee simple conditional
d. fee simple absolute
D.
After a lease expires, the tenants are living on the premises w/o the landlord’s consent. The tenants are
a. tenants at will
b. tenants in common
c. tenants at sufferance
d. periodic tenants
C.
An estate at will
a. must be in writing
b. can be cancelled by the lessee or lessor at any time
c. is for a specific pd of time
d. must have rent being paid
B
B sold a property to Y and reserved a life estate for B. Y recorded the deed. B sold his life estate to D, who recorded the deed. Y demanded that the property pass to her in fee simple title immediately. In this case
a. Y’s claim is invalid because B controls his interest while alive
b. Y’s claim is valid
c. Neither Y or B have a claim to this property
d. B needed to obtain Y’s permission to make the transfer
A.
When a tenant transfers the entire leasehold to a third party, its a
a. sublease
b. assumption
c. estoppel
d. assignment
D.
In a positive leasehold, the
a. contract rent is higher than the economic rent
b. contract rent is higher that the market rent
c. economic rent is higher than the contract rent
d. “” is lower than the contract rent
C.
In a sublease with a positive leasehold, who normally benefits from the excess rent
a. sublessee
b. sublessor
c. lessor
d. broker
B.
Which is true
a. subleasing or assigning a lease always requires the lessor’s permission
b. when a tenant’s interest in a lease is assigned, both the assignor and assignee have liability to the landlor
c. in a positive leasehold, there is no excess rent
d. economic rent may never be higher than contract rent
B.
When a property is rented for only one month, this is called what kind of tenancy?
a. period to period
b. at will
c. estate for years
d. month to month
C.
remember
This question said one month. So there is an end date! This is not an estate at will
Estate/Tenancy for Years …the rent is paid for a specified and definite period of time
When a lease is for an indefinite period, this is called
a. freehold estate
b. estate for years
c. estate at will
d. estate at sufferance
C.
A grantor conveyed a life estate to a party and also retained a future interest in the property when the life tenant dies. The future interest is called
a. remainder
b. reversion
c. pur autre vie
d. fee tail
B. reversion
What is the difference between fee simple and non-freehold
a. fee simple is freely inheritable, whole no freehold estate is a lease
b. fee simple is for a person’s life, while non freehold is freely inheritable
c. non freehold has no time limit, while fee simple has a definite time
d. non freehold is for a persons life while fee simple is a lease
A.
A father owns a house as a fee simple owner and gives his daughter a life estate in the property with a provision that the prop will pass to the son after her death. The son has a
a. reversion interest
b. remainder interest
c. homestead interest
d. riparian interest
B.
A person holding a life estate sells their interest to a buyer. If the life tenant dies, who owns the property
a. the life tenants heirs
b. the buyer
c. the person who gave the life estate to the life tenant
d. the state due to escheat
C.
KNOW YOUR ESTATES
ESTATE FOR YEARS
definite ending date, no notice to terminate, no auto renewal
ESTATE FROM PERIOD TO PERIOD
no ending date, auto renewal, notice to terminate
ESTATE AT WILL
unspecified term, no notice to term, ex. guest on prop
ESTATE AT SUFFERANCE
wrongful holdover by tenant, rent not paid/accepted. NOTE: a holdover tenancy may be mutually agreed to or wrongful
CONTRACT RENT vs ECONOMIC RENT
From the TENANT point of view
POSITIVE LEASEHOLD**Economic rent exceeds contract rent
NEGATIVE LEASEHOLD**Contract rent exceeds economic rent
CONTRACT RENT
What you pay and stated in lease
ECONOMIC RENT
What the market will bring - Market rent
EXCESS RENT
Eco rent - Contract Rent = Excess Rent
Estates in Real Property: KEY TERMS
- Contract Rent
- Conventional Life Estate
- Demise
- Economic Rent
- Estate
- Estate (Tenancy) for Years
- Estate at Sufferance
- Estate at Will
- Estate from Period to Period
- Estate in Remainer
- Estate in Reversion
- Excess Rent
- Fee Simple Absolute
- Holdover Tenancy
- Lessee
- Lessor
- Life Estates
- Life Tenant
- Negative Leasehold
- Positive Leasehold
- Quiet Enjoyment
- Remainderman
- Reverter
- Sublease (Sandwich Lease)
- Trade Fixtures
- Waste
The two rights that a landlord has under a lease are right to ? and the right of ?
Right to Receive Rent
Right of Reversionary
A tenant’s right to protection from any claim against the leasehold interest is the right of ?
Right of Quiet Enjoyment:
def: The right to use the property w/o interference by the lessor or others claiming a superior title
Examples of Freehold Estates (Fee Simple/Life Estate)
Daughter creates a life estate for Mom. At Mom’s death, it will revert to the daughter.
i. Mom holds a life estate
ii. Daughter holds a reversionary interest (estate in reversion)
Example of Freehold Estates
Daughter creates a life estate for Mom. At Mom’s death, it is to pass to Brother.
i. Mom holds life estate
ii. Daughter hold no interest.
iii. Brother holds a remainder interest (estate in remainder).
Estate in Remainder
Example of Freehold Estate
Mom conveys fee simple title to Son but reserves a life estate for herself.
i. Mom holds a life estate
ii. Son holds an estate in remainder.
