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Real Estate > Leases in California > Flashcards

Leases in California Flashcards

1
Q

This defines the legal relationship between the parties who signed the lease. It grants possession, but not title, to the tenant, and is for a limited period of time.

A

Leasehold estate

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2
Q

This is a fix termination type of lease that may be for a day, week, month, year, several years, or any definite period of time. When the specified day occurs, the lease terminates automatically.

A

Estate for years

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3
Q

This involves possessory interest that’s automatically renewed at the end of each period specified in the lease. An example would be a month to month lease.

A

Periodic Estate

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4
Q

And this type of leasehold, the duration of the lease is unknown at the time it’s created

A

Estate at will

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5
Q

This is a type of possession in which a tenant stays after the right to possess has terminated

A

Estate at sufferance a.k.a. tenancy at sufferance

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6
Q

This is a tenant who refuses to leave after the expiration of a lease

A

Holdover tenant

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7
Q

This is a contract, that transfers possession for consideration

A

Lease

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8
Q

This is the one who leases and is placed in possession (tenant)

A

Lessee

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9
Q

This is the one who leases out, granting temporary position to another (landlord)

A

Lessor

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10
Q

What word do other states use instead of Estate?

A

Tenancy, instead of estate at will, tenancy at will, instead of estate at sufferance, tenancy at sufferance, etc.

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11
Q

Actual eviction

A

The physical removal of tenant, accomplished by legal process

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12
Q

Assignment of lease

A

The substitution of tenants , putting the responsibility for the lease contract in the new tenants hands (although it doesn’t fully relieve the former tenant from my abilities to the new tenant failed to pay) Most places have languages that an assignment requires the landlords written permission.

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13
Q

Constructive eviction

A

A situation in which the tenant is prohibited from quiet enjoyment of the premises and vacates

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14
Q

Covenant

A

An agreement or promise made between the parties

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15
Q

Estate at sufferance

A

The type of possession in which a tenant stays after the right to possess, has terminated

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16
Q

Estate at will

A

A type of leasehold estate in which the duration of the lease is unknown at the time it is created

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17
Q

Estate for years

A

A fixed termination type of lease that may be for a day, week, month, year, or several years, or any definite period of time. When the specified date occurs, the least terminates automatically.

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18
Q

Holdover tenant

A

A tenant who refuses to leave after the expiration of a lease

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19
Q

Lease

A

A contract that transfers possession for consideration

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20
Q

Leasehold estate

A

The legal relationship between the parties who signed the lease. Grants possession, but not title, to the tenant, and is a for limited period of time.

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21
Q

Lessee

A

Tenant

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22
Q

Lessor

A

Landlord

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23
Q

Option to renew

A

The right of a tenant to renew a lease upon the expiration of a lease. (seen frequently in commercial leases.

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24
Q

Periodic Estate

A

Involves possessory interest that automatically renewed at the end of each specified in the lease, a.k.a. month-to-month

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25
Q

Quiet enjoyment

A

The tenants right to enjoy the property without being dispossessed, or trespassed upon

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26
Q

Security deposit

A

A sum provided by a tenant to a landlord to cover extraordinary expenses or unpaid rent when a tenant vacates

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27
Q

Self help eviction

A

Illegal interjection in which the landlord has taking matters into his own hands any kicks the tenant without using legal procedures

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28
Q

Sublease

A

An agreement for a new occupant to live in the premises, and pay rent to the former tenant, who pays the landlord. Requires landlords written permission doesn’t relieve the former tenant from liability.

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29
Q

A lease that ends on a specific date, like December 31

A

Estate for years

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30
Q

A lease that ends on December 31, but will be automatically renewed for another year

A

Periodic Estate
Can go from one period To another period of time/ lease

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31
Q

A lease without an established period of time

A

Estate at will

Think as the landlord would ask, will you stay another year, yes, I’ll stay another year

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32
Q

A holdover tenant, someone who didn’t leave when the lease expired, has this kind of possession

A

Estate at sufferance

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33
Q

Intent

A

Parties must clearly indicate that the leasing arrangement is desired

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34
Q

Lease requirements in California

A

Intent the party is most clearly indicate that the leasing arrangement is desired
Naming it must be clear who the parties are to the lease
Property identification must be clear which property is to be leased
Payment agreement time amount and manner of rental payments must be outlined
Term the length of lease agreement must be noted

No written contract required for lease less than a year any tenant who enters into such a lease agreement, would become a tenant at will if there’s no written agreement

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35
Q

Eric’s residential tenant hasn’t paid rent for more than three months, so Erik went to court to start eviction proceedings. He’s now been granted the right to remove the tenant. This is.————— eviction.

Actual
Aggressive
Constructive
Sufferance

A

Actual eviction
Physically and legal removed from the premises

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36
Q

Lorenzo just received fellowship to study abroad for a year. However, he just signed a one-year lease on his apartment. With the landlords permission, he substituted his sister’s name on the lease, and Lorenzo’s sister will pay the rent directly to the landlord. Lorenzo may still be liable for the rent if she misses any payments. This is an example of.————
Assignment
Assimulation
Subleasing
Transfer

A

Assignment
A new tenant becomes directly responsible to the landlord, but the previous tenant may remain responsible to the landlord for unpaid rent or property damage, unless the assignment specifically releases the previous tenant from responsibility

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37
Q

Lorenzo just received a fellowship to study abroad for a year. However, he has six months left on his one-year apartment lease. His landlord has given him permission to draw up a new agreement with his sister Maggie. Maggie will live in the apartment, pay rent to Lorenzo, and then Lorenzo will pay the landlord. This is an example of————
Assignment
A simulation
Subleasing
Transfer

A

Sublease leasing, requires the landlords permission, but the original tenant still pays. The landlord has the lease specifies.

38
Q

Lacey is new to California and has found a room to rent month-to-month basis until she finds a permanent place to live. For her lease to be legally binding, it must meet the following minimum criteria.

A

Put in writing or discussed Orly
Since it’s less than a year

39
Q

Leases with a term of one year or more, are required to be in writing, according to the California statue of———-
Frauds
Landlord and tenants
Leases
Limits

A

Frauds
A contract with a term that is longer than a year must be in writing to be enforceable

40
Q

Which type of lease hold last for a defined period of time and automatically terminates when that period ends?
Estate at sufferance
Estate at will
Estate for years
Periodic Estate

A

Estate for years
Specified period of time, not necessarily just four “years“

41
Q

Malcolm loves his apartment, even though he’s rarely there. His job in international development has him on the road for months at a time. He doesn’t have to worry about missing out on his lease renewal, though, because he has.——-
A freehold estate
An estate at will
An estate for years
A periodic estate

A

A periodic Estate
Renews automatically at the end of each period specified in the lease agreement
Think period to period doesn’t end period

42
Q

An example of this type of leasehold estate is a month-to-month lease
Estate at sufferance
Estate at will
Estate for months
Periodic Estate

A

Automatically renews at the end of its lease term, such as at the end of a given month

43
Q

Which of these terms is used to describe when a new occupant lives in a rental unit and pays rent to the previous tenant, who is still under contract with the landlord?
Assignment
Covenant
Estate at will
Sublease

A

Sublease

44
Q

What’s required for both assignments and subleasing in most cases?
An escrow account
A real estate license
A security deposit
Landlord approval

A

Landlord approval

45
Q

Primary types of commercial leases

A

Gross leases the simplest lease form, all expenses related to the property, are part of the lease payment and paid by the landlord. full service leases rent, nuts, utilities, janitorial, expenses, no unexpected costs. modified gross leases typically will include all the nuts in the base rent, but not utilities or janitorial. Frequently used for multi tenant industrial buildings, and single-story office properties.

46
Q

Net leases

A

triple net NNN (T.I.M taxes, insurance, maintenance, ) lease- tenant pays all expenses related to the property in addition to taxes, insurance, maintenance Triple pays lower lease rate with operating and maintaining space fees.
single net or double net tenant pays one or two of these expenses, but not all three.

47
Q

Absolute net leases

A

Rare. They are NNN TRIPLE NET LEASES. May relieve the tenant of payment. Responsibility of property is subject to an eminent domain proceeding. No legal defenses if a tenant fails to meet lease payment obligations.

48
Q

Percentage lease

A

Commonly used and retail properties such a Shopping Center’s in malls

Additional charge is a percentage of the tenants gross sales. The natural break point or break even point is calculated by dividing the base rent by the established percentage the percentage charged is stepped up gradually as the tenants business grows.

49
Q

Gross lease, what does the landlord pay for?

A

Taxes, insurance, maintenance

50
Q

What expenses does a tenant pay with a triple net lease?

A

Taxes, insurance, and maintenance
Think TIM

51
Q

With which type of least, will you hear the term? “ natural break even point.”?
Gross lease
Net lease
Percentage lease

A

Percentage lease

52
Q

Percentage lease

A

Low rent
Incentive to the building owner to bring in business

53
Q

Anchor retailers are an exception

A

Macy’s, JCPenney, etc.
Instead of a percentage lease, an anchor retailer may get a rent subsidy

54
Q

A percentage lease is more commonly used in retail properties, such a Shopping Center malls. What a typical lease for a multi tenant industrial building?
Full service
Triplenet
Modified gross
Absolute net

A

Modified gross
Used for multitenant industrial buildings, and single-story office is because they include all the nuts in the base rent but not utilities or janitorial services

55
Q

List of a space that generally wide open and has limited services
Loft space
Not a loft space

A

Loft space

56
Q

Lease of residential space above a commercial store front
Loft space
Not a loft space

A

Not a loft space

57
Q

Which of these describes a full service lease
- A lease includes all the nuts in the base rent, but not utilizes or janitorial services
- A lease where the tenant pays a base rent plus an additional charge that is a percentage of the tenants gross sales
- A lease in which the landlord passes on utility cost, as well as all costs related to common area maintenance to the tenant
- A lease where the base rent, the nuts, the utilities, and janitorial services are all included in one price per square foot lease rate

A

Elise where the base rent, the nuts, the utilities, and janitorial services are all included in one price per square foot lease rate

Play including charges for the nuts, utilities, and janitorial in the base rent that the rent remain stable overtime

58
Q

With a full service lease, the benefits of the leaves are all on the tenant side, the landlord doesn’t stand to make any profit with this kind of arrangement

True or false

A

False
And if expenses go down, those savings are passed on to the owner

59
Q

Front escalates based on the percentage of property the tenant occupies

A

Proportionate shares of occupancy

60
Q

Future escalations are based on the foundational period

A

Base year

61
Q

A lease in which rent is stepped up incrementally in specified amounts over the lease term. The lease may also contain an escalation clause.

A

Graduated lease

62
Q

An escalation in which an estimated amount of expenses is compared to the actual amount, and the tenant is reimbursed, if expenses are less, or pays more, if expenses are more than predicted.

A

Dollar stop a.k.a. expense, stop or operating stop

63
Q

Does escalation is tied to a market in Decatur, such as the consumer price index CPI

A

Indexed lease escalation clause

64
Q

This increases tied to the wage rate of cleaning and maintaining personnel

A

Porter’s wage escalation

65
Q

Proportionate share

A

Requires the tenant to pay fair share of cost to operate the building

66
Q

Expense stop

A

Increases the tenants lease payment for increases an operating expenses

67
Q

Direct operating costs

A

Requires tenants to pay their share of increases an operating costs

68
Q

Tax

A

Requires the tenant to pay a share of increases in real estate taxes

69
Q

Index

A

Sam’s rent increases to increases in a market index (like CPI)

70
Q

When does escalation clauses tend to apply?

A

The base year has passed

71
Q

Raman just started his clothing business in a high traffic shopping center. This type of lease agreement will require Raymond to pay the landlord rent based upon the percentage of the periodic gross sales. This type of agreement is called a——- lease agreement
- Gross
- Ground
- net
- Percentage

A

Percentage

72
Q

A tenant has a small office, space and a professional building. The set monthly lease payment includes maintenance of the common areas of the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for the space. The payment also includes taxes and insurance. The landlord takes this payment and pays the individual expenses himself. What type of lease does this tenant have?
- graduated lease
- Gross lease
- Net lease
- Percentage lease

A

Gross lease

73
Q

Which of these types of tenants most often use a percentage lease?
- Manufacturing
- Residential
- Retail
- triple. net

A

Retail

74
Q

How is the break even point calculated for a percentage lease?

A

Divide the monthly base rent by the percentage the landlord established

75
Q

A conveyance lease

A

By the landlord, to the tenant of an estate in real property, covering the premises, least, which creates “privity of a state” , between the landlord and tenant

76
Q

A contract lease

A

Between the landlord, and the tenant which governs both the landlords delivery and maintenance of the premises, and the tenants possession of, use of, and payments for the premises(which creates “ privity of contract” between the landlord and tenant)

77
Q

What is privity of estate

A

Conveyance

78
Q

What is privity of contract

A

Contract

79
Q

A lease conveys property from a landlord to a tenant, that’s creating privity of———-

A

Estate

80
Q

Describe two terms for a lease

A

Method of conveying real property(possession, not ownership) and method for contract for terms between parties

81
Q

Contract and conveyance specifics

A

contract must be in writing
Mutual assent : agreement between the landlord and tenant
Mutually of obligation : each of them is bound to the lease terms
Legally capacity : able to enter in contract ( no minors institutionalized)
Lawful object : the lease cannot be for an illegal purpose drug lab. In addition, any provisions that are not legal, would be void example landlord can enter any time without notice.
Execution : the parties have signed the lease
Delivery : the parties have received copies of the lease
Acceptance : the parties agree to abide by the lease terms
If a mom moves in then is deemed acceptance of its terms
Recording : leases do not have to be recorded, but may be recorded in the public records of the county in which it is leased= record it for one year to protect Owner)

82
Q

Agreement between landlord and tenant

A

Mutual asset

83
Q

Both the landlord and the tenant are bound to the Leases terms

A

Mutuality of obligation

84
Q

Parties to the lease must be of age of majority end of sound mind

A

Legal capacity

85
Q

The least not have an illegal purpose

A

Lawful object

86
Q

And this lease requirement indicates the landlord and tenant agree to the terms of the lease

A

Mutual asset

87
Q

The legal term describes the actor signing a lease

A

Executed

88
Q

Mutual asset

A

Mutual agreement

89
Q

This legal aspect of lease establishes “ privity of contract”
- contract
- Conveyance
- Covenant
- Statute of frauds

A

Contract

90
Q

This legal aspect of a lease establishes “ privity of Estate”
- clairvoyance
- Contract
- Conveyance
- Ownership

A

Conveyance

91
Q

When a landlord grants possession of a property to tenant, this is called an active what?
- Contract
- conveyance
- Ownership

A

Conveyance

92
Q

Which of these terms refers to the mutual agreement between the landlord and tenant?
- Lawful object
- Legal capacity
- Mutual asset
- Neutrality of obligation

A

Mutual asset

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