Unit 1 Chapter 22

Question 1

Lease Provisions

Answer 1

• Capacity to contract – legally able to enter into the agreement
• Demising clause – landlord leases the property and tenant takes possession
• Description of premises – identify the property by address or description
• Statement of term – duration, notice requirements, process/penalty for early termination
• Rent – time, place, manner, and amount of rent payment as well as grace period
• In writing – duration more than a year, should be in writing
• Signatures – landlord must sign, tenant should sign
• Delivery – landlord must deliver to tenant and both should have duplicate originals

Question 2

Rights of Residential Renters

Answer 2

• Tenant Eviction Procedures Act of 1976 – unifies eviction process of multi-unit housing
• The Uniform Residential Landlord and Tenant Act (URLTA) – model law enacted as a blueprint for
state laws to regulate leasing and management practices.
• Faith-based organizations exempt from the ADA.
• Fair Housing protects disabled and other groups in residential sector
• Fair Housing law allows special dwellings to be set aside for Americans older than 55 to the exclusion of
younger people or families with children.
• Disabled people are allowed to make reasonable modifications to rental property at their own expense,
providing they restore the dwelling to its original condition upon termination of the lease.

Question 3

Lease Components

Answer 3

• Security deposit – money deposited with landlord for repair of any damages to property
• Repairs and maintenance - defines who is responsible for what
• Subletting and assignment – transferring portion of leasehold interest to another party; transfer of entire
leasehold interest by tenant to a third party
• Rules and regulations – for protection of property and other tenants
• Improvements and alterations – identifies necessary permissions for alterations and who owns the
improvements
• Options – right to renew, purchase, and lease additional space
• Damage and destruction – regulated by state law
• Explanation of use – how property can be used and what rights are included
• Collection and disputes – process for rent collection and resolving disputes between tenant and
landlord
• Covenant of quiet enjoyment – only tenant has right to possess premises
• Lease renewals – can be automatic renewal

Question 4

Lease Termination

Answer 4

• Term expiration
• Notice by either party
• Voluntary agreement by both parties
• Property destruction
• Condemnation or eminent domain
• Foreclosure
• Abandonment of property by tenant
• Breach of contract

Question 5

Defaults

Answer 5

• By tenant – failure to pay rent or maintain premises; landlord evicts, sues for damages
• Eviction process – 10-day notice, court ordered notice to vacate, Sheriff’s notice to vacate, Sheriff
physically removes
• By landlord – failure to provide services and maintain property; tenant sues for damages