Leasing & Property Mgmt.

Question 1

the tenant stays after the right to possess has terminated. The tenant is known ad a holdover tenant.

Answer 1

Estate at sufferance

Question 2

the lease’s duration is unknown when it’s created

Answer 2

Estate at will

Question 3

the lease terminates automatically when the specified period (day, week, month, year, etc.) ends.

Answer 3

Estate for years

Question 4

the lease automatically renews at the end of each period specified in the lease

Answer 4

Periodic estate

Question 5

type of lease which tenant pays some or all of the property’s costs in addition to rent.

Answer 5

net lease

Question 6

a new lease agreement between the tenant/lessee as sublessor and a third party as sublessee for all or a portion of the leased premises

Answer 6

sublease

Question 7

lease in which tenant pays for property taxes, insurance, and maintenance along with the rent.

Answer 7

triple net lease

Question 8

a triple net lease, in which the tenant is also responsible for all building expenses and repairs, including roofing and structural repairs.

Answer 8

absolute net lease

Question 9

type of lease in which the landlord pays all expenses related to the property (such as taxes, repairs, insurance, utilities, maintenance) while the tenant pays the fixed rent.

Answer 9

gross lease (full-service lease)

Question 10

type of lease in which the tenant pays a base rent plus an additional charge that’s a % of the tenant’s gross sales, once a specific breakpoint is met. Landlord usually pays all property costs, but this may not always be the case.

Answer 10

percentage lease

Question 11

type of lease which allows specific rent increases at future dates; increases can be based on a number of factors: changes to appraised value, index, or time.

Answer 11

graduated lease

Question 12

lease in which one party owns the land and a different party owns the improvements

Answer 12

ground lease

Question 13

lease which provides rental of floor space of wide-open loft spaces; tenant may divide the space but can’t make structural changes

Answer 13

loft lease

Question 14

when a tenant wants to buy a property but can’t (either due to financing, title, or tax issues) this may be an option; the tenant makes rental payments, and a portion of that payment is applied to the property’s purchase price - this continues until the tenant can purchase the property outright

Answer 14

lease purchase

Question 15

often used for minerals, oil, or gas; a company will enter into a lease agreement with the landowner, in order to explore land/look for minerals, in exchange for a cash payment to the landowner.

Answer 15

sub-surface leasing rights

Question 16

a sample law that states may follow in enacting their own landlord-tenant legislation; purpose of this act it to base landlord-tenant law on contract law instead of common law.

Answer 16

URLTA (Uniform Residential Landlord Tenant Act)

Question 17

the legal process used to physically remove the tenant

Answer 17

actual eviction

Question 18

the tenant is prohibited from quiet enjoyment of the premises and vacates prior to termination of the lease agreement.

Answer 18

constructive eviction

Question 19

the landlord takes matters into his own hands and evicts the tenant w/o using legal procedures

Answer 19

self-help eviction

Question 20

usually covering a one year period, this report projects the income and expenses of operating the property.

Answer 20

Operating budget

Question 21

usually created monthly, this report shows the current financial status of a property (accounts for income received and expenses paid)

Answer 21

Cash flow report

Question 22

prepared on a monthly, quarterly, semi-annual, or annual basis; this report shows whether the property profited during the period or suffered a loss.

Answer 22

Profit and loss statement

Question 23

this report compares actual results from the profit and loss statement, to those projected on the operating budget.

Answer 23

Budget comparison statement

Question 24

manipulates owners into the fear that the entry of a protected class will negatively impact property values to encourage an owner to rent or sell.

Answer 24

blockbusting

Question 25

occurs when members of protected classes are guided toward certain areas, buildings, or neighborhoods by a property manager or real estate licensee.

Answer 25

steering

Question 26

act that permits some housing facilities to discriminate based on familial status; this exemption permits senior housing facilities and communities to refuse to sell/rent homes to families with minor children.

Answer 26

The Housing for Older Persons Act of 1995

Question 27

if a dwelling has 4 or fewer rental units, and one of the units is owner occupied, the property is exempt from the federal Fair Housing Act (if the owner doesn’t run discriminatory ads).

Answer 27

Mrs. Murphy exemption