Leasehold Estates

Question 1

Which of these leases does not address future rent increases

Gross

Index

Escalated

Graduated

Answer 1

Gross

Note
A gross lease has a fix rental amount for the full-term and does not address future rent increases

Question 2

Which of these lease arrangements is motivated by improving the tenants immediate cash flow

Fixed lease

Percentage lease

Sale and leaseback

Index lease

Answer 2

Sale and leaseback

Note
The sale and leaseback allows the tenant to free up capital by selling the property while still maintain possession

Question 3

Elise and which the tenant pays a portion of the buildings operating expenses is a

Gross lease

Net lease

Percentage lease

Graduated lease

Answer 3

Net lease

Question 4

A tenant who fails to vacuum the upon expiration of the state for years

Must be evicted

Is a holdover tenant

Must give notice to extend

May automatically renew

Answer 4

Is a holdover tenant

Question 5

Which of the following is not a method of lease termination

Negligence

Mutual cancellation

Expiration

Eviction

Answer 5

Negligence

Question 6

Which of these is required in a lease

Recordation of the document

Mediation and arbitration provision

Option to renew

Provision for payment of rent

Answer 6

Provision for payment of rent

Question 7

Oral leases are

Acceptable if rental rate is less than $500

Not valid

Acceptable for terms of less than one year

Not enforceable in court

Answer 7

Acceptable for terms of less than one year

Question 8

Williams lease is described as open ended. This must be an estate

At sufferance

From year to year

For years

At will

Answer 8

At will

Question 9

The obligations of the landlord and tenant to each other are mostly dictated by

The uniform landlord and tenant act

The terms of the lease contract

Common-law

Michigan laws addressing rentals

Answer 9

The terms of the lease contract

Question 10

The term of the lease

May be altered by the landlord unilaterally

Will always require notice to terminate

Must be for a minimum. Of one year

May be reduced by a breach of contract

Answer 10

Maybe reduced by a breach of contract

Question 11

At least that exist for a fixed period of time and terminates automatically without notice by either party is in the state

At will

From year-to-year

For years

At sufferance

Answer 11

For years

Question 12

Jenkins has a lease that requires no notice to terminate upon expiration of the initial term. Jenkins has a

Estate at sufferance

Estate at will

Estate from year-to-year

Estate for years

Answer 12

Estate for years