Leases: Landlord and Tenant

Question 1

Owner of real estate that is giving someone a lease to the property.

Answer 1

Lessor

Question 2

Tenant

Answer 2

Lessee

Question 3

Lessor

Answer 3

Owner of real estate that is giving someone a lease to the property.

Question 4

Lessee

Answer 4

Tenant

Question 5

A lease MUST be in writing if it is for what length of time?

Answer 5

Three years

Question 6

Estate for years

Answer 6

For a definite period of time. Has a specific start date and end date. Does NOT have to be in year intervals! Can be less than a year. Does not need notice to terminate lease at the end of the term.

Question 7

Types of leasehold estates?

Answer 7

-Estate for years
-Estate from period to period
-Estate at will
-Estate at sufferance

Question 8

Estate from period to period

Answer 8

Periodic tenancy. Automatically renews at agreed upon interval (weekly, monthly, yearly, etc) until notice is given that lease is ending.

Question 9

Lease for a definite period of time. Has a specific start date and end date.

Answer 9

Estate for years

Question 10

Tenancy at will

Answer 10

Tenant has the right to possess the property with the consent of the landlord for an indefinite period of time.

Question 11

What type of lease is called periodic tenancy and automatically renews at the end of the term.

Answer 11

Estate from period to period.

Question 12

What type of lease has no end date and runs until landlord ends it?

Answer 12

Tenancy at will

Question 13

Tenancy at sufferance

Answer 13

Tenant who lawfully came into possession of property continues to hold possession of the premise after their rights have expired without the consent of the landlord.

Question 14

Which lease has a tenant stay after their lawful lease is expired?

Answer 14

Tenancy at sufferance

Question 15

What are the standard lease provisions?

Answer 15

-Capacity to contract (parties must be sane adults)
-A demising clause (the lessor to let (rent) and the lessee to take the premises)
-Description of the premises (description should be clearly stated)
-A clear statement of the term (duration)
-The rent and how it is to be paid
-MUST be in writing IF the least is more than three years
-Signatures of both parties

Question 16

Can a real estate licensee draw up a residential lease?

Answer 16

Yes. If the lease term is for more than one year, a three day attorney review is required.

Question 17

When was lead-based paint banned?

Answer 17

1978

Question 18

What is the maximum security deposit for residential leases?

Answer 18

Month and a half.

Question 19

When does any remainder of security deposit have to be mailed back to the tenant?

Answer 19

Within 30 days. If it is not sent within 30 days, the violation is double the security.

Question 20

What is the maximum security deposit for commercial properties?

Answer 20

There is none. This is part of the negotiation process.

Question 21

Implied warranty of habitability

Answer 21

Every residential lease guarantees that the leased property is fit for human habitation and that the tenant is not subjected to any conditions that could endanger life, health or safety.

Question 22

What guarantees that the leased property is fit for human habitation and that the tenant is not subjected to any conditions that could endanger life, health or safety?

Answer 22

Implied warranty of habitability

Question 23

Sublet

Answer 23

When the tenant transfers most of the term but not all, or only a portion of the premises. Example, renting a single room, or renting the property for 3 months out of a 12 month term.

Question 24

ADA

Answer 24

Americans with Disabilities Act

Question 25

Constructive eviction

Answer 25

If a landlord fails to provide such basic services necessary for human habitation as heat, electricity, or water, and the premise becomes uninhabitable, a tenant may move out and cease paying rent. Tenant MUST MOVE OUT to claim constructive eviction.

Question 26

Suit for eviction

Answer 26

Actual eviction. When a tenant breaches a lease or improperly retains possession of leased premises, the landlord may regain possession through a suit for possession or summary proceeding to recover possession of real estate.

Question 27

New Jersey’s Anti-Eviction Act

Answer 27

Provides, with only a few exceptions, that tenants who are current with their rent payments may not be evicted solely on the grounds of foreclosure.

Question 28

Three primary types of lease

Answer 28

-Residential - Gross lease. Lessee pays basic rent. Lessor pays property charges (taxes, repairs, insurance, etc).

• Commercial/industrial - Net lease. Lessee pays basic rent plus all or most property charges. Lessor may pay some property charges.

-Retail - Percentage lease, Lessee pays basic rent plus percent of gross sales (may pay property costs.) Lessor may pay some or all property charges.

Question 29

Types of Leases

Answer 29

-Gross lease
-Net lease
-Percentage lease
-Variable lease
-Ground lease
-Oil and gas lease

Question 30

Gross lease

Answer 30

Most common in residential lease. Tenant pays rent, landlord pays insurance, taxes, etc.

Question 31

Net lease

Answer 31

Most common in commercial lease. Tenant pays rent plus insurance, taxes, etc.

Question 32

Percentage lease

Answer 32

Rent changes based on the income of the business.

Question 33

Variable lease

Answer 33

Rent can change over time

Question 34

Ground lease

Answer 34

Tenant rents bare land and builds on it.