Unit 17

Question 1

Lease

Answer 1

A contract between the lessor (owner) and the lessee (tenant) that transfers possession and use of the property, lasts for a specified period, and it made in return for consideration (possession and payment)

Question 2

Statute of frauds

Answer 2

in most states requires that leases for more than one year to be in writing to be enforceable

Question 3

4 types of leasehold estates

Answer 3

-Estate for years (tenancy for years)
-Estate from period to period (periodic tenancy)
-Estate at will (tenancy at will)
-Estate at sufferance

Question 4

Estate for years (tenancy for years)

Answer 4

Continues for a definate period. A HOLDOVER tenancy may be created when a tenant with an estate for years stays on after the lease term expires and the landlord accepts rent payment

Question 5

Estate from period to period (periodic tenancy)

Answer 5

Has no specific expiration dates but rent is payable at definite intervals and the lease term has continuity because it automatically renews. A month-to-month tenancy is a common form of residential lease

Question 6

Estate at will (tenancy at will)

Answer 6

Has no specified initial term, created by express agreement or operation of law, and can be terminated by the landlord or the tenant at any time on proper notice

Question 7

Estate at sufferance (tenancy at sufferance)

Answer 7

Created when the tenant stays on without the landlord’s consent after termination. The landlord’s acceptance of rent creates a holdover tenancy, or the landlord can treat the tenant as a trespasser and begin eviction proceedings and an action for damages under state law

Question 8

a valid lease requires CLOAC

Answer 8

-Capacity to contract
-Legal objective
-Offer and acceptance
-valid Consideration

Question 9

a lease typically includes

Answer 9

Description of premises, implied covenant of quiet enjoyment, nondisturbance clause, limitations on tenant’s use, length/term, security deposit, statement of improvements made by tenant

Question 10

American Disabilities Act (ADA)

Answer 10

Requires that commercial nonresidential property be free of barriers or that reasonable accommodations be provided

Question 11

Gross lease

Answer 11

Requires the tenant to pay rent and the landlord to pay the expense of ownership, such as taxes, insurance, and maintenance

Question 12

Net lease

Answer 12

Requires the tenant to pay rent plus all or most property expenses, with the landlord also paying some property expenses

Question 13

Percentage lease

Answer 13

The tenant pays rent plus a percentage of gross sales and may pay property expenses.

Question 14

Variable lease

Answer 14

Allows an increase in rent during the lease period

Question 15

Graduated lease

Answer 15

States specific rent increases

Question 16

Index lease

Answer 16

Allows rent changes (up or down) based on the consumer price index or other indicator

Question 17

Ground lease

Answer 17

Involves separate ownership of land and buildings

Question 18

Oil and Gas lease

Answer 18

Allows exploration for and removal of oil and gas

Question 19

Lease purchase

Answer 19

Part of the rent may be applied to the purchase price

Question 20

Sale-and-leaseback

Answer 20

Allows the original owner to use the property as a tenant while freeing up capital for another business purpose

Question 21

Remedies for breach of a lease

Answer 21

Landlord may bring suit for possession (actual eviction), OR tenant may claim a constructive eviction if the premises are uninhabitable

Question 22

Uniform Residential Landlord and Tenant Act

Answer 22

adopted by many states and updated in 2015