Leases

Question 1

contract between the lessor (the owner of real estate, also called the landlord) and the lessee (the tenant) that transfers possession and use of the property, lasts for a specified period, and is made in return for consideration (possession and payment).

Answer 1

Lease

Question 2

requires that leases for more than one year be in writing to be enforceable

Answer 2

Statute of frauds

Question 3

may be created when a tenant with an estate for years stays on after the lease term expires and the landlord accepts rent payment.

Answer 3

holdover tenancy

Question 4

continues for a definite period

Answer 4

Estate for years (tenancy for years)

Question 5

no specific expiration date, but rent is payable at definite intervals and the lease term has continuity because it automatically renews.

Answer 5

estate from period to period

Question 6

common form of residential lease.

Answer 6

month to month tenancy

Question 7

no specified initial term, is created by express agreement or operation of law, and can be terminated by the landlord or the tenant at any time on proper notice.

Answer 7

estate at will (tenancy at will)

Question 8

created when the tenant stays on without the landlord’s consent after termination. The landlord’s acceptance of rent creates a holdover tenancy, or the landlord can treat the tenant as a trespasser and begin eviction proceedings and an action for damages under state law.

Answer 8

estate at sufferance (tenancy at sufferance)

Question 9

A valid lease requires

Answer 9

Capacity to contract, Legal objective, Offer and Acceptance, and valid Consideration (CLOAC)

Question 10

Included in the lease

Answer 10

Description of Premise 
Covenant of quiet enjoyment 
Non disturbance clause 
Limitations of use 
Term Length 
Security Deposit 
Improvement allowance

Question 11

An option may give the tenant the right to

Answer 11

Renew the lease
Purchase the property
Right of first refusal

Question 12

requires the tenant to pay rent and the landlord to pay the expenses of ownership, such as taxes, insurance, and maintenance.

Answer 12

Gross lease

Question 13

requires the tenant to pay rent plus all or most property expenses, with the landlord also paying some property expenses.

Answer 13

Net Lease

Question 14

the tenant pays rent plus a percentage of gross sales and may pay property expenses.

Answer 14

Percentage lease

Question 15

allows an increase in rent during the lease period.

Answer 15

variable lease

Question 16

states specific rent increases

Answer 16

graduated lease

Question 17

allows rent changes (up or down) based on the consumer price index or other indicator.

Answer 17

Index lease

Question 18

involves separate ownership of land and buildings.

Answer 18

ground lease

Question 19

allows exploration for and removal of oil and gas.

Answer 19

oil and gas lease

Question 20

part of the rent may be applied to the purchase price

Answer 20

lease purchase

Question 21

allows the original owner to use the property as a tenant while freeing up capital for other business purposes.

Answer 21

sale and leaseback

Question 22

What would automatically terminate a residential lease?

Answer 22

Destruction of property

Question 23

An estate for years is a leasehold estate that

Answer 23

continues for a definite period.

Question 24

A tenancy is which the tenant continues in possession after the lease has expired, without the landlord’s permission is

Answer 24

an estate at sufferance

Question 25

What must a landlord do before commencing a lawsuit for actual eviction?

Answer 25

Serve notice on the tenant

Question 26

In what field are ground leases most often used?

Answer 26

Commercial development

Question 27

A business owner operates a small store in a shopping center. Under the terms of the lease, the landlord pays all operating expenses. The tenant pays a base rent of $1,000 per month, plus 15% of monthly gross profits over $10,000. The tenant has

Answer 27

percentage lease

Question 28

Use restrictions are particularly common in leases for

Answer 28

stores or commercial space.

Question 29

Who owns the building that is erected on land that has a ground lease?

Answer 29

lessee

Question 30

A lease agreement that contains language that permits a new landlord to terminate existing leases is

Answer 30

permmissable and enforceable

Question 31

The federal Fair Housing Act is administered by

Answer 31

Department of Housing and Urban Development

Question 32

In the absence of clear limitations in the lease as to the use of the premises,

Answer 32

a lessee may use the premises for any lawful purpose.

Question 33

Which transaction is BEST described as involving a ground lease?

Answer 33

A landlord charges a commercial tenant separate amounts for the land and the leased building.

Question 34

The lease that provides for the tenant to pay the LEAST amount of expenses other than rent is

Answer 34

Gross lease