Leasing & Property Management

Question 1

Professional liability insurance that protects real estate licensees from mistakes or negligence.

Answer 1

Errors and Omissions Insurance

Question 2

Person in a position of trust, held by law to high standards of good faith and loyalty.

Answer 2

Fiduciary

Question 3

An agent authorized to handle all of the principal’s affairs in one area or in specified areas.

Answer 3

General Agent

Question 4

Physically forcing someone off of property, preventing someone from reentering property, or using the legal process to make someone leave.

Answer 4

Eviction

Question 5

A leasehold estate set to last for a definite period (e.g., one week, three years), after which it automatically terminates. Also called a term tenancy.

Answer 5

Estate for Years

Question 6

Lease for which the landlord pays all ownership expenses such as property taxes, insurance, etc.

Answer 6

Gross Lease

Question 7

Lease under which the tenant leases only the land from the owner, but the tenant owns the building. Also called a ground lease.

Answer 7

Land Lease

Question 8

A lessee who remains in possession of property after the lease has expired; a tenant who refuses to surrender possession of property at the tenancy’s end.

Answer 8

Holdover Tenant

Question 9

A lease in which the amount of the rent is tied to some common index indicator such as the Consumer Price Index or the Wholesale Price Index. As the agreed upon index increases, the rent goes up by the same percent of change.

Answer 9

Index Lease

Question 10

Conveyance of a leasehold estate from the fee owner to a tenant; a contract where one party pays the other rent in exchange for possession of real estate.

Answer 10

Lease

Question 11

The establishment of the maximum number of occupants allowable in a given rental dwelling, intended to help promote an adequate and safely occupied inventory of housing.

Answer 11

Occupancy Standard

Question 12

A leasehold estate that continues for successive periods of equal length (such as from week to week or month to month), until terminated by proper notice from either party. Also called an estate from year to year or a period-to-period tenancy.

Answer 12

Periodic Tenancy

Question 13

A method for financing commercial or industrial properties in which a company constructs the building and then becomes a tenant by selling the building to an investor.

Answer 13

Sale-and-Leaseback

Question 14

Money a tenant gives a landlord at the beginning of the tenancy to ensure the tenant will comply with lease terms. The landlord may retain all or part of the deposit at the end of the tenancy to cover unpaid rent, repair costs, or other damages.

Answer 14

Security Deposit

Question 15

Someone who occupies an abandoned or unoccupied space or building that the squatter does not own, rent, or otherwise have permission to use.

Answer 15

Squatter

Question 16

Giving up an estate (such as a life estate or leasehold) before it has expired.

Answer 16

Surrender

Question 17

Lawful possession of real property, an estate.

Answer 17

Tenancy

Question 18

Possession of property by a holdover tenant. Also called estate at sufferance.

Answer 18

Tenancy at Sufferance

Question 19

When a tenant is in possession with the owner’s permission, but with no definite lease term and no rent being paid (or rent is not paid on a regular basis); e.g., a landlord lets a holdover tenant remain on the premises without paying rent until a new tenant is found. Also called estate at will.

Answer 19

Tenancy at Will

Question 20

A property developed for co- ownership, where each co-owner has a separate interest in an individual unit, combined with an undivided interest in common areas of the property.

Answer 20

Condominium

Question 21

When a landlord’s act (or failure to act) interferes with the tenant’s quiet enjoyment of the property, or makes the property unfit for its intended use, to such an extent that the tenant is forced to move out.

Answer 21

Constructive Eviction

Question 22

A building owned by a corporation, where the residents are shareholders in the corporation; each shareholder receives a proprietary lease on an individual unit and the right to use the common areas.

Answer 22

Cooperative

Question 23

The rent the property could currently command on the open market

Answer 23

Economic rent

Question 24

Lease where the landlord pays all property taxes, insurance, etc.

Answer 24

Gross Lease

Question 25

Lease where a tenant pays a percentage of gross sales in addition to rent.

Answer 25

Percentage Lease

Question 26

Lease where tenants pay all taxes,insurance, etc., plus utilities and rent.

Answer 26

Net Lease

Question 27

Exclusive, longer term lease given to a person who lives in a cooperative and owns stock in the cooperative.

Answer 27

Proprietary Lease

Question 28

An ownership interest that gives the owner a right to possession of the property only for specific, limited period each year.

Answer 28

Timeshare

Question 29

When a tenant transfers only part of their right of possession or other interest in leased property to another person for part of the remaining lease term (as opposed to an assignment, where the tenant gives up possession for the entire remainder of the lease term).

Answer 29

Sublease

Question 30

A transfer of the terms of a contract from one party to another, for example, when a tenant transfers their right of possession, or other interest in leased property, to another person for the entire remainder of the lease term.

Answer 30

Assignment

Question 31

The landlord interest in a lease; a right to future possession that is retained by owners, such as when they lease their property to someone else.

Answer 31

Reversion