Key Terms - Chapter 15

Question 1

breach of condition

Answer 1

Failure of landlord or tenant to perform his or her respective duties under the terms of the lease, thereby giving the other party grounds for terminating the lease agreement.

Question 2

constructive eviction

Answer 2

The right of a tenant to move out and stop paying rent resulting from some action or inaction by the landlord that renders the premises unsuitable for the use agreed to in a lease or another rental contract.

Question 3

estate at suffrance

Answer 3

Describes the situation of someone continuing to occupy property after lawful authorization has expired. A form of leasehold estate.

Question 4

estate at will

Answer 4

A leasehold estate that may be terminated at the will of either party.

Question 5

estate for years

Answer 5

A leasehold estate of definite duration.

Question 6

estate from period to period

Answer 6

A leasehold estate that automatically renews itself for consecutive periods until terminated by notice given by either party. Also called estate from year to year and periodic tenancy.

Question 7

fit premises

Answer 7

Residential property that is in fit condition for human habitation. In North Carolina a landlord is required to do whatever is necessary to put and maintain fit premises.

Question 8

full-service leases

Answer 8

A lease requiring each tenant to pay a portion of the overall operating expenses for the building and common areas in addition to a base rent; common in large office buildings and shopping centers.

Question 9

graduated lease

Answer 9

One in which the rental amount changes in specified amounts over the lease term.

Question 10

gross lease

Answer 10

One in which the lessor pays all costs of operating and maintaining the property and real property taxes.

Question 11

ground (land) lease

Answer 11

A lease of unimproved land. Also called a land lease.

Question 12

index lease

Answer 12

One in which the rental amount is changed in proportion to changes in a measure such as the Consumer Price Index.

Question 13

landlord

Answer 13

One who owns real property and leases it to another. Also referred to as lessor.

Question 14

lease

Answer 14

A contract wherein a landlord gives a tenant the right of use and possession of property for a limited time in return for rent.

Question 15

lessee

Answer 15

A tenant under a lease.

Question 16

lessor

Answer 16

A landlord under a lease.

Question 17

net lease

Answer 17

One in which the lessee pays a fixed amount of rent plus the costs of operation of the property.

Question 18

North Carolina Residential Rental Agreement Act

Answer 18

A North Carolina statute that affects residential rentals in North Carolina by setting forth the mutually dependent obligations and duties of landlords and tenants, as well as the remedies available for breach of contract by the landlord.

Question 19

North Carolina Tenant Security Deposit Act

Answer 19

A North Carolina statute that requires a landlord or his or her agent to ensure that residential rental deposits are placed in a trust account or guaranteed with a bond and specifies the amount and permitted use of such deposits. The tenant must be notified of the disposition of such deposits.

Question 20

percentage leases

Answer 20

One in which the rental amount is a combination of a fixed amount plus a percentage of the lessee’s gross sales.

Question 21

periodic tenancy

Answer 21

A lease that automatically renews for successive periods unless terminated by either party. Also called an estate from year to year.

Question 22

residential eviction remedies

Answer 22

Judicial eviction, also known as summary ejectment, is the only legal residential eviction remedy in North Carolina.

Question 23

retaliatory eviction statute

Answer 23

The doctrine protecting a tenant from eviction for having asserted his or her rights. Provides an automatic defense for up to one year after such an event.

Question 24

sale and leaseback

Answer 24

A transaction whereby an owner sells his or her property to an investor who immediately leases the property to the seller as agreed in the sales contract.

Question 25

tenant

Answer 25

Lessee. A person possessing real property with the owner’s permission.