Unit 17: Leases

Question 1

A contract between a property owner and a tenant

Answer 1

Lease

Question 2

The owner of the real estate is known as the

Answer 2

Lessor- landlord

Question 3

The tenant is also called this

Answer 3

Lessee

Question 4

The tenant’s right to possess real estate for the term of the lease is called a

Answer 4

Leasehold estate (less than freehold)

Question 5

What are the four types of leasehold estates

Answer 5

1. Estate for years- definite period of time
2. Estate from period to period- indefinite term with automatic renewal
3. Estate at will- indefinite term of stay
4. Estate at Sufferance- refuses to leave property

Question 6

In MA to evict a tenant at will, requires how much notice in writing

Answer 6

30 days

Question 7

In MA for a lease to be considered enforceable it must be in

Answer 7

writing

Question 8

What are the requirements of a valid lease

Answer 8

1. Capacity to contract (legal age and sound mind)
2. Have a legal objective (not breaking any laws)
3. Offer and acceptance- mutual agreement
4. Consideration- exchange of promises i.e. rental for known fee

Question 9

The lessee can occupy the premises without interference from the owner or anyone else, known as

Answer 9

Covenant of quiet enjoyment

Question 10

This occurs when a tenant transfers the entire leasehold interest to another person

Answer 10

assignment

Question 11

A tenant transfers less than the entire leasehold interest to a new tenant

Answer 11

Subleasing- subletting

Question 12

What are the types of leases

Answer 12

1. Gross lease
2. Net lease
3. Net net net lease
4. Percentage lease

Question 13

Most common type of lease when the tenant pays the rent and the landlord pays the rest

Answer 13

Gross lease

Question 14

Lease where the tenant pays the rent and some of the expenses

Answer 14

Net lease

Question 15

This lease is one where the tenant pays rent and all the expenses

Answer 15

Triple net (net-net-net lease); retail properties

Question 16

Lease where the tenant pays rent plus a percentage of the gross sales

Answer 16

Percentage lease- malls (retail business)

Question 17

These leases have built in increases in rent payments over the lease term

Answer 17

Variable lease or a graduated lease

Question 18

The terms of this lease are from 50 to 99 years

Answer 18

Ground lease

Question 19

Renting with an option to buy

Answer 19

Lease purchase

Question 20

Sell the property and then lease it back for an agreed period and rental

Answer 20

Sale and leaseback

Question 21

When a tenant violates any lease provision, the landloard may sue the tenant

Answer 21

Breach of lease

Question 22

In MA any lease for more than one year must be in

Answer 22

writing

Question 23

What are the specific MA law required procedures for eviction

Answer 23

A landlord must give a two weeks written notice to the tenant and the tenant may pay all overdue rent plus landlord expenses during that period.
In a tenancy at will, the law requires landlords give the tenant as much time to stay in the property as one rental period after the landlord provides a notice to quit the property; usually 30 days and maximum of 3 months.

Question 24

The landlord may enter the property without violating the tenant’s right of quiet enjoyment for the following reasons

Answer 24

1. in accordance with a court order
2. to make necessary repairs
3. to show the property to a prospective tenant
4. if it appears the tenant has abandoned the property

Question 25

At the time a tenancy commences, no tenant may be required to pay any amount in excess of the following:

Answer 25

*The first month's rent *The last month's rent *A security deposit equal to the first month's rent, and *The purchase and installation cost for a key and lock

Question 26

This is not the landlord's money to keep and must be kept in a separate bank account in MA; no credit unions allowed.

Answer 26

Security deposit- Tenant is entitled to receive it within 30 days of the termination of the lease.

Question 27

If a security deposit is required, this form must be provided in writing to the tenant 10 days prior to moving in.

Answer 27

Statement of condition- tenant has 15 days to review and add any damages that the landlord did not include in the list. Both parties must sign

Question 28

A landlord must provide one of these that lists amount of money received, date received, intended use of money, name of person receiving money, name of landlord if different, a statement that the tenant is entitled to the interest on the deposit, address and apt number, location and name of bank, account number of the fund in which the money is deposited; a statement the tenant provide the landlord a forwarding address so when they move, they can receive the interest.

Answer 28

Receipt

Question 29

Landlords are entitled to withhold the following three deductions from the security deposit

Answer 29

any unpaid rent any unpaid increase in real estate taxes for which the tenant is liable under the lease the reasonable cost of repairing damage caused by the tenant, excluding normal wear and tear