Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Leases/Commercial Leasing/Ownership Interests > Leases/Methods of Ownership/Taking Title > Flashcards

Leases/Methods of Ownership/Taking Title Flashcards

1
Q

Death of lessor or lessee or sale of property does not terminate the lease TRUE or FALSE

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A lease provision (key term lease provision) that limits a landlord’s costs due to increases in taxes, insurance and other operating costs is? (hint commercial lease term)

A

Expense Stop

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Sale of a leased property DOES/DOES NOT terminate the lease.

A

DOES NOT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Creating the automatic right of survivorship in a property ownership means that upon the death of one person, that person’s interest goes to ? without ?

A

Surviving Tenants
Probate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The 4 unities of joint tenancy are ? , which stands for:
T
T
I
P

A

Time
Title
Interest
Possession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Corporations, LLCs, and other legal entities cannot take title as JTWRS because CORP, LLCs and legal entities have perpetual existence or/aka?

A

they don’t die

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Joint tenants MAY/MAY NOT convey their interest without permission of the other joint tenants

A

MAY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

If two people own as joint tenants and one transfers his/her interest to another party, the joint tenancy is broken, and the third party is tenant in common with the other owner. TRUE/FALSe

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Ownership of property by two or more legal or natural persons< which does not have the right of survivorship is ? ? ?

A

Tenancy in Common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Although the four unities required (TTIP) required for joint tenancy may be present, the only unity of ownership required for tenancy in common is possession. TRUE/FALSE

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The Methods of taking title are Severalty, JTWRS, Community Property, CPWRS, Tenancy In Common. Describe each:

A

Severalty
** # of ppl 1
** Relationship NONE
** Requirements NONE
** % of Ownership: 100%
** At Death: Heirs

JTWRS
# of ppl 2+
Relationship: NO Corps, LLCs, et
Requirements: TTIP
% of Ownership: Equal
At Death: Automatic Right of Survivorship

Community Property
# of ppl 2
Relationship: Married
Requirements: Both must sign to sell
% of Ownership: 50%
At Death: Heirs

CPWRS
# pp 2
Relationship: Married
Requirements: Both Must sign to sell
% of Ownership: 50
At Death: Auto right to survivorship

Tenancy in Common
# of ppl 2+
Relationship: NONE
Requirements: Unity of Possession
% of Ownership: Equal or Unequal
At Death: Passes based on method of ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How would two buyers take title if they were not related?

a. Sole and separate
b. Tenancy in common
c. Interval
d. community property

A

B. Tenancy in Common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  • The lessee pays a fixed rent, taxes insurance, and maintenance in a*
  • a. gross lease*
  • b. net lease*
  • c. index lease*
  • d. percentage lease*
A

B.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In a net lease, a lessee can deduct which of the following items from federal income taxes

A

C.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which actions would not terminate a lease

a. constructive eviction of tenant
b. condemnation of the property
c. actual eviction of the tenant
d. sale of property

A

D.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which of the following businesses would most likely have a percentage lease

a. art gallery
b. consumer research company
c. municipal utility
d. gov’t office

A

A.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In a lease with an option to purchase, the option is enforceable by

a. optionor
b. optionee
c. either party
d. neither party

A

B.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The best example of a percentage lease would be a lease in which the rent was a % of the tenants

a. gross income
b. net income
c. net receipts w/ a min rent
d. gross receipts w/ a min rent

A

D.

19
Q

When a landlord gives a tenant the right to buy the property within two years at a fixed price, it is called a

a. sale leaseback
b. option
c. right of first refusal
d. net lease

A

B.

20
Q

Which situation would automatically terminate a lease

a. abandonment and surrender
b. expiration date of the lease
c. death of the tenant
d. death of the owner

A

B.

21
Q

The clause in a lease that would call for periodic increases in rent is the

a. escalator clause
b. excess rent clause
c. acceleration clause
d. percentage clause

A

A.

22
Q

Which statement is incorrect concerning sale leasebacks?

a. proceeds of the sale will free up working capital
b. an investor buys the property and leases the property back to the seller
c. the lessee can deduct rent as a business expense on hi income taxes
d. ownership of the property never actually changes

A

D.

23
Q

A tenant is leasing a prop which the tenant is interested in buying. The owners are not sure they want to sell at this time. What type of contract would give the owners most freedom of choice

a. option
b. purchase contract
c. right of first refusal
d. lease option

A

C.

REMEMBER

Options and first right of refusal are both unilateral contracts. The question was which gave the MOST freedom.

First right of refusal is the BEST answer bc the owner has the opp to say IF I DECIDE TO SELL/LEASE, I WILL GIVE YOU THE FIRST OPP

In an OPTION, the optionee has the right within a specified period for a specified $

24
Q

If tenants have a three year lease on a property and the prop sold

a. all leases must be renegotiated within 30 days
b. the new owner takes over the leases
c. the new owner may evict all tenants within 30 days
d. the leases remain if effect if the new owner does not renegotiate them within 60 days

A

B.

25
Q

In a commercial lease, what limits increases in the landlord’s costs such as taxes and insurance

a. common area maintenance fees
b. expense stop clause
c. tenant improvements
d. escalator clause

A

B.

26
Q

Under the Federal Protecting Tenants at Foreclosure Act, all of the following are correct except

a. tenants must receive at least 90 days notice to vacate
b. leases that were in force prior to the beginning of foreclosure must be honored
c. tenants who are evicted must receive “cash for keys”
d. the act does not protect commercial tenants

A

C.

27
Q

A lease in which the landlord pays all expenses is a

a. net lease
b. gross lease
c. Index lease
d. proprietary lease

A

B.

28
Q

A lease in which the tenant pays the expenses is a

a. net lease
b. gross lease
c. graduated lease
d. general lease

A

A.

29
Q

A net lease is sometimes called a (think Net Net Net)

A

Triple net lease

30
Q

The landlord is liable for mortgage payments in what type of lease

a. ground lease
b. anchor lease
c. sale leaseback
d. net lease

A

D.

Remember

a net lease is a COMMERCIAL LEASE and tenant pays all expenses INCLUDING TAX and INSURANCE

LANDLORD is responsible for MORTGAGE

31
Q

A lease in which the tenant was the former owner is a

a. triple net lease
b. sale leaseback
c. lease option
d. proprietary lease

A

B.

32
Q

A lease in which he rent increases and decreases at specified times

a. ground lease
b. graded lease
c. index lease
d. gross lease

A

B. aka Graduated lease

33
Q

A lease in which the tenant has the right to buy or re-lease the property

a. percentage lease
b. lease option
c. anchor lease
d. gross lease

A

B.

CLUE: The question said tenant has the right to buy or re-lease. the BEST answer is lease OPTION.

Remember an option and right of first refusal are unilateral contracts

34
Q
  • A lease in whcih the tenant is a shareholder in a cooperative is a*
  • a. index lease*
  • b. anchor lease*
  • c. percentage lease*
  • d. proprietary lease*
A

D.

Just remember: Proprietary = Coop!!

35
Q
  • A lease in which the tenant is a nationally recognized company*
  • a. gross lease*
  • b. ground lease*
  • c. anchor lease*
  • d. net lease*
A

C.

36
Q
  • Alterations to a leased space to accommodate the lessee’s use are:*
  • a. expense stop*
  • b. surrender and acceptance*
  • c. escalator clause*
  • d. tenant improvements*
A

D.

37
Q
  • Mutual agreement to terminate a lease is called*
  • a. condemnation clause*
  • b. actual eviction*
  • c. constructive eviction*
  • d. surrender and acceptance*
A

D.

38
Q
  • The legal term for the eviction process*
  • a. foreclosure*
  • b. surrender and acceptance*
  • c. ejectment aka forcible entry and detainer action*
  • d. constructive eviction*
A

C.

39
Q
  • If a landlord breaches lease terms resulting in the property becoming uninhabitable and causing the tenant to terminate the lease, it is referred to as*
  • a. ejectment*
  • b. eminent domain*
  • c. constructive eviction*
  • d. expiration of term*
A

C.

CLUE: in the question if a landlord breaches lease terms

Constructive eviction is a tenants remedy

40
Q

Death of the landlord or tenant does/does not terminate the lease

A

DOES NOT

41
Q

Sale of a leased property does/does not terminate the lease

A

does not

42
Q

Two Types of evictions…

Two types of EVICTIONS

1._ACTUAL_ (_landlord’s action_) eviction action taken by the landlord if the tenant fails to perform obligations.

***Ejectment aka Forcible Entry and Detainer Action is the _legal proceeding_ to regain possession of the property

2.CONSTRUCTIVE (tenant’s action)** Process of tenant terminates the lease due the landlord’s failure to perform obligations, such as **failing to provide heat or air conditioning or failing to cure other problems that make the prop inhabitable

A
43
Q

Termination of Leases terms

  • Surrender and Acceptance MUTUAL AGREEMENT to end the lease.
  • _Eminent Domain_ tenant is no longer able to use the prop due to condemnation of the prop, the lease usually terminates. _Commercial leases_ a _condemnation clause_ specifies the landlord’s and tenant’s rights if eminent domain is exercised
  • _Condemnation clause_ limits a tenant’s claims against the landlord for any compensation the landlord receives from the government
  • Foreclosure of a Mortgage

_Protecting Tenants at Foreclosure Act_ requires landlords who acquire

RESIDENTIAL PROPERTY** through foreclosure to**:

**Give tenants a min of 90 DAYS NOTICE to vacate OR honor the remaining term of the lease if greater than 90 days

COMMERCIAL PROPERTY foreclosure MAY allow the new owner to terminate the lease

A

Leases/Commercial Leasing/Ownership Interests (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions