Leases

Question 1

What transfers ownership interest in a property from one party to another?

Answer 1

Conveyance

Question 2

What is not true about a lease?

Answer 2

It conveys legal title

Question 3

Which type of leasehold estate requires proper notice to terminate and has no definite end date?

Answer 3

Estate from period to period

Question 4

A tenant who doesn’t leave when the lease expires is called what?

Answer 4

A holdover tenant

Question 5

What law requires a lease to be in writing to be enforceable?

Answer 5

Statute of Frauds

Question 6

What covenant (agreement or promise) should be included in a lease agreement?

Answer 6

Description of the premises

Question 7

What is the purpose of a security deposit?

Answer 7

To pay for damages beyond normal wear and tear that occurs during a lease

Question 8

According to the Texas Property Code, a landlord has a right to set the maximum number of adults over what age for their property?

Answer 8

18

Question 9

What code authorizes the process for a suit for possession?

Answer 9

Texas Property Code

Question 10

What is not a valid reason for a lease termination?

Answer 10

The tenant dies

Question 11

In what situations (3) would a lease automatically be terminated?

Answer 11

• Voluntary Agreement
• Property Destruction
• Condemnation

Question 12

What type of lease requires the landlord to pay the property’s operating expenses (utilities, repairs, and maintenance) while the tenant pays only rent?

Answer 12

Gross Lease

Question 13

Model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties is called what?

Answer 13

URLTA

(Uniform Residential Landlord and Tenant Act)

Question 14

What is the aim of the URLTA?

Answer 14

To protect tenants from unethical practices

Question 15

Which lease type bases rental amount off the percentage of sales made on the site?

Answer 15

Percentage lease

Question 16

In a net lease, in addition to the rent, what does the tenant pay?

Answer 16

A fixed rent plus all maintenance and taxes

Question 17

What is the lease called in which the tenant agrees to pay all taxes, insurance, maintenance and repairs?

Answer 17

Triple net lease (Net-net-net)

Question 18

What is one major difference between residential and commercial leases?

Answer 18

Residential leases are typically shorter.

Question 19

Landlord/Lessor:

Answer 19

The owner of the property which is leased/rented to another person or entity.

Question 20

Lessee:

Answer 20

A tenant
(i.e. a person who rents land or property from a landlord/lessor)

Question 21

Covenant:

Answer 21

A promise in a written contract or a deed of real property.

Question 22

Conveyance:

Answer 22

The act of transferring an ownership interest in a property from one party to another.

Question 23

Leasehold estate:

Answer 23

A temporary right to hold land/property in which a tenant holds rights of real property by some form of title from a landlord

(AKA: Less-than-freehold estate)

Question 24

Freehold Estate:

Answer 24

Any estate that is “free from hold” of any entity besides the owner.

(Leasehold estates are distinguished from freeholds by their temporary nature)

Question 25

Estate for years:

Answer 25

A lease that continues for a fixed period of time with no auto-renewal (year or more lease)

Question 26

Periodic lease:

Answer 26

A lease with no definite ending date but runs from period to period.

(Also referred to as month-to-month lease)

Question 27

Estate at will:

Answer 27

Leasehold without a lease

Question 28

Estate at sufferance:

Answer 28

A leasehold estate in which a tenant stays in possession of a property without the consent of the owner/landlord after the lease has expired/has been legally terminated.

Question 29

Holdover tenant:

Answer 29

A tenant who doesn’t leave when the lease expires.

Question 30

Assignment:

Answer 30

The transfer of a lease by a tenant to a third party.

Question 31

Suit for possession:

(a.k.a. Suit for Eviction)

Answer 31

Legal suit filed by a landlord if a tenant is in default.

If successful, the landlord can repossess the property and evict the tenant.

Question 32

Gross lease:

(a.k.a Full-Service Lease)

Answer 32

Lease which requires the landlord to pay the property’s operating expenses (utilities, repairs, maintenance) while the tenant pays only rent.

Question 33

Net type leases:

Answer 33

Lease that requires tenant to pay rent in addition to some/all maintenance and operating expenses (taxes, insurance, utilities, repairs)

Question 34

Graduated lease:

Answer 34

Lease where rent payments start at a fixed amount but increase as the lease term matures.

Question 35

Land lease:

Answer 35

Lease where the landowner grants the tenant a leasehold interest in the land only in exchange for rent.

Question 36

Percentage lease:

Answer 36

a lease arrangement where the tenant pays a predetermined rent plus a percentage of sales made

Question 37

Proprietary lease

Answer 37

A Co-op lease (btwn a cooperative apt association + tenant) that gives the right to occupy a specific apartment.

Question 38

Index lease:

Answer 38

A type of lease where the rent fluctuates based on changes in the consumer price index.