UNIT 11

Question 1

Rent would BEST be defined as

a. the contractual consideration to a third party.
b. the consideration for the use of real property.
c. all monies paid by the lessor to the lessee.
d. the total amount owed under the terms of a lease.

Answer 1

b. the consideration for the use of real property.

Question 2

Landlord and tenant enter into a three-year lease agreement. Tenant agrees to pay an established monthly amount for the first year. For the remaining months, the rent will increase a predetermined amount at regular intervals until the end of the lease period. This is an example of

a. a balloon lease.
b. an index lease.
c. a gross lease.
d. a graduated lease.

Answer 2

d. a graduated lease.

Question 3

A tenant’s apartment lease has expired. She and her landlord have agreed that she may remain on the premises until a sale of the building is finalized or until the tenant locates another suitable rental, whichever occurs first. The tenant will continue to pay her normal monthly rent. She and the landlord made a commitment to inform each other two weeks prior to ending this agreement. The tenancy described is

a. estate at will.
b. estate sale.
c. estate at sufferance.
d. periodic tenancy.

Answer 3

a. estate at will.

Question 4

The tenant leases a heated apartment, but the landlord fails to provide heat because of a defective central heating plant. After numerous written requests for the landlord to fix the heating problem, the tenant vacates the premises and refuses to pay any more rent. This is an example of

a. abandonment.
b. actual eviction.
c. constructive eviction.
d. lessor negligence.

Answer 4

c. constructive eviction.

Question 5

Under the provisions of a typical commercial lease, any trade fixtures that remain in the property after the lease has expired will be the property of the

a. lessor.
b. lessee.
c. property manager.
d. future tenant.

Answer 5

a. lessor.

Question 6

A North Carolina landlord’s remedy of tenant eviction includes

a. sending, via certified mail, notification of cancellation of the lease to the tenant.
b. changing the locks on the rental unit if on three separate occasions the tenant fails to respond to the landlord’s requests for payment.
c. filing for summary ejectment in district court.
d. seizing and selling the tenant’s personal property to cover property damage caused by the tenant.

Answer 6

c. filing for summary ejectment in district court.

Question 7

A residential tenant is unhappy with the habitability of an apartment, because the toilet will not flush. Under the North Carolina Residential Rental Agreements Act, the tenant may

a. hire a plumber and charge it to the landlord.
b. pay a plumber and deduct it from his next month’s rent.
c. withhold rent until the problem is fixed by the landlord.
d. wait for the landlord to make the repair.

Answer 7

d. wait for the landlord to make the repair.

Question 8

The authority to enforce an order of summary ejectment of a delinquent tenant from rented property in North Carolina is held by the

a. housing authority.
b. landlord.
c. sheriff.
d. property manager.

Answer 8

c. sheriff.

Question 9

A tenant’s lease has expired, but the tenant has not vacated the premises or negotiated a renewal lease. The landlord wants the tenant out of the unit. This type of occupancy is referred to as an estate

a. for years.
b. from year to year.
c. at will.
d. at sufferance.

Answer 9

d. at sufferance.

Question 10

A businessman agrees to lease a barber shop from a landlord. The party responsible for the expense of making repairs to the interior of the building would MOST likely be

a. shared equally by the landlord and the tenant.
b. determined by negotiation of the parties.
c. the landlord under the NC Residential Rental Agreements Act.
d. the tenant.

Answer 10

b. determined by negotiation of the parties.

Question 11

When a tenant sublets all or any part of the premises rented under a written lease

a. the tenant assigns all rights and responsibilities in the rented property to the new lessee.
b. the sublessee becomes primarily responsible to the landlord for the payment of rent and maintenance of the property.
c. the original lease is automatically canceled and the sublessee takes possession of the property on a month-to-month basis.
d. the original lease is unaffected unless it contains a provision that prohibits such subletting.

Answer 11

d. the original lease is unaffected unless it contains a provision that prohibits such subletting.

Question 12

All of the following would acquire title to real property EXCEPT

a. a grantee.
b. a devisee.
c. a vendee.
d. a lessee.

Answer 12

d. a lessee.

Question 13

The principal difference between an estate for years and an estate from year to year is that

a. an estate for years is a life estate.
b. an estate for years cannot be renewed.
c. an estate from year to year must be in writing.
d. an estate from year to year has no termination date.

Answer 13

d. an estate from year to year has no termination date.

Question 14

A lessee who pays some or all of the lessor’s property expenses has a

a. gross lease.
b. net lease.
c. percentage lease.
d. sublease.

Answer 14

b. net lease.

Question 15

The covenant implied in a lease that ensures that the tenant will not be evicted by someone claiming ownership of the property prior to that of the lessor is the covenant

a. of seizin.
b. of quiet enjoyment.
c. of warranty forever.
d. against encumbrances.

Answer 15

b. of quiet enjoyment.

Question 16

A tenant has an estate for years. According to the written one-year lease, the tenancy will expire on May 1st. In order for the landlord to regain possession as of that date, he is

a. required to provide the tenant with 30 days’ notice.
b. required to provide the tenant with 60 days’ notice.
c. required to give notice as of April 15th.
d. not required to give notice.

Answer 16

d. not required to give notice.

Question 17

The owner of real estate who leases it to another is called the

a. vendor.
b. lessor.
c. grantor.
d. trustor.

Answer 17

b. lessor.

Question 18

A North Carolina lease that will terminate within one year of its beginning

a. is invalid.
b. violates the provisions of the statute of frauds.
c. must be in writing.
d. may be valid if oral.

Answer 18

d. may be valid if oral.

Question 19

Which of the following is the BEST definition of actual eviction?

a. The right of a landlord to use the rental premises
b. The enforcement of a court order to remove a lessor
c. The landlord’s future interest in the rental premises
d. The enforcement of a court order to remove a lessee

Answer 19

d. The enforcement of a court order to remove a lessee

Question 20

When a tenant holds possession of a landlord’s property with an indefinite lease term but with the consent of the landlord, this is called

a. estate in common.
b. estate at sufferance.
c. estate at will.
d. trespass.

Answer 20

c. estate at will.

Question 21

If a landlord wishes to remove a tenant that has breached the lease from the rental unit, the landlord should

a. refund any rents paid.
b. refund all security or other deposits paid.
c. file for a summary ejectment.
d. use the absolute minimum amount of force necessary.

Answer 21

c. file for a summary ejectment.

Question 22

Tenants of an apartment complex have continually complained that the lighting in the parking lot is very inadequate, but the landlord has done nothing to improve the situation. A tenant is subsequently robbed and beaten in a darker section of the parking lot. The landlord may be sued because of

a. the law of negligence.
b. the tenant’s right of constructive eviction.
c. the doctrine of caveat emptor.
d. the landlord’s breach of contract.

Answer 22

a. the law of negligence.

Question 23

An estate for years

a. must have a term of at least one year.
b. requires no notice requirement to terminate the lease.
c. grants lifetime rights to a surviving spouse.
d. grants the lessee a freehold estate.

Answer 23

b. requires no notice requirement to terminate the lease.

Question 24

A tenant is in possession of property for an automatically renewable period of time. The tenancy is terminable with proper prior notice by either party. This is an example of

a. estate for years.
b. periodic tenancy.
c. determinable estate.
d. estate at sufferance.

Answer 24

b. periodic tenancy.

Question 25

Under a residential gross lease, the lessor typically pays all of the following EXCEPT

a. maintenance costs.
b. real estate taxes.
c. insurance premiums.
d. a security deposit.

Answer 25

d. a security deposit.

Question 26

A tenant’s lease does not terminate for five more years. The premises, however, have become too small to accommodate the tenant’s growing business. Another business owner is interested in leasing the premises from the tenant for three years. If the landlord does not object, the tenant would MOST probably agree to

a. tenancy at will.
b. a quitclaim deed.
c. assignment.
d. periodic tenancy.

Answer 26

c. assignment.

Question 27

A young couple with a toddler wants to lease an apartment in a quiet high-rise complex that is occupied primarily by adults. The rental agent shows the couple apartments only on the first floor, although the couple has expressed an interest in units with a view of the city. The rental agent should

a. restrict tenants with small children to first floor units for the safety of the children.
b. charge a higher security deposit for this tenant.
c. have suggested that the couple look elsewhere.
d. have shown all units that met the couple’s preference for a view.

Answer 27

d. have shown all units that met the couple’s preference for a view.

Question 28

The lease prohibits tenants from altering the property in any way without the landlord’s written permission. A tenant who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself nor can she use the bathroom facilities in her wheelchair. Which of the following is TRUE?

a. The landlord must pay for alterations that make a unit accessible to and livable for tenants with disabilities.
b. The tenant cannot remedy these challenges because of the lease terms.
c. The landlord should not have rented this apartment to the tenant.
d. The tenant is entitled to make and pay for reasonable necessary alterations.

Answer 28

d. The tenant is entitled to make and pay for reasonable necessary alterations.

Question 29

In North Carolina, leases

a. are not assignable.
b. can be assigned unless the lease expressly prohibits it.
c. can only be executed by a property manager.
d. must be in writing and recorded to be valid.

Answer 29

b. can be assigned unless the lease expressly prohibits it.