Section 3 - Chapter 17

Question 1

lease is:

Answer 1

a contract between owner of real estate (lessor) and a tenant (the lessee); sets time/length and price

Question 2

reversionary right:

Answer 2

lessor receives property back after lease is up

Question 3

lessor’s interest is called:

Answer 3

a leased fee estate plus reversionary right

Question 4

statute of frauds says:

Answer 4

lease agreements be in writing to be enforceable if they are for more than one year; written rule also applies to leases for less than a year not being performed within one year of contract date

Question 5

verbal leases:

Answer 5

for one year or less that can be performed within a year are enforceable

Question 6

leasehold estate:

Answer 6

the tenant’s right to possess real estate for the term of the lease; considered personal property

Question 7

“estate for years”

Answer 7

a lease for a definite period of time

Question 8

“tenancy for years”

Answer 8

any definite period

Question 9

“estate from period to period” - periodic tenancy

Answer 9

an agreement for an indefinite time period; characterized by continuity, automatically renewable

Question 10

holdover tenancy

Answer 10

lease is up, but tenant can keep paying to keep it going for a temporary time

Question 11

“estate at will”

Answer 11

tenant can possess property with the landlord’s consent for an unspecified or uncertain term; indefinite duration

Question 12

“estate at sufferance”

Answer 12

tenant who lawfully possessed real property continue possession without landlord’s consent

Question 13

lease agreements may be

Answer 13

written, oral or implied

Question 14

use restrictions say:

Answer 14

what a lessee can and cannot use the space for

Question 15

perpetual leases usually are deemed:

Answer 15

invalid unless specifically stated in lease that it’s indefinite

Question 16

landlord typically is responsible for

Answer 16

maintenance of property, safe habitat,

Question 17

lease transfers from tenant to another person are called;

Answer 17

assigned

Question 18

less-than-full interest transfers from tenant to new tenant is called:

Answer 18

sublease; sublet

Question 19

nondisturbance clause:

Answer 19

mortgage clause saying that can’t terminate paying rentors if mortgagee forcloses

Question 20

gross lease:

Answer 20

lessee pays basic rent, that’s all

Question 21

net lease:

Answer 21

lessee pays rent plus some or all of property charges

Question 22

triple-net lease:

Answer 22

lessee pays rent plus ALL other property charges

Question 23

percentage lease:

Answer 23

rent + percentage of gross income generated through that lease property

Question 24

graduated and index leases allow:

Answer 24

changes in rent during the lease periods

Question 25

ground lease is:

Answer 25

lease land to someone who improves the land with a building; usually separate ownership of land and building

Question 26

lease purchase used when:

Answer 26

tenant wants to buy the property but can’t do so

Question 27

sale-and-leaseback

Answer 27

owners sell then lease back

Question 28

actual eviction is:

Answer 28

landlord’s process to reclaim property

Question 29

constructive eviction:

Answer 29

tenant’s right to terminate lease based on breach of lessor