Unit 17 - Leases

Question 1

Define a Lease

Answer 1

A contract between an owner of real estate and a tenant

Question 2

After the lease expires the landlord retains

Answer 2

A reversionary right

Question 3

Define a Leasehold Estate

Answer 3

A tenants right to possess real estate for the term of the lease

Question 4

Define an Estate for Years

Answer 4

Also called a tenancy for years, is a lease hd estate that continues for a definite period of time

Question 5

In a tenancy for years

Answer 5

No notice is required to terminate the lease agreement because there is a specific expiration date

Question 6

Define an Estate from Period to Period

Answer 6

Is created when the landlord and the tenant enter into an agreement for an indefinite time

Question 7

Define an Estate at Sufferance

Answer 7

When a tenant with an estate for years remains in possession after the lease term expires without approval from the landlord

Question 8

Define an Holdover Tenancy

Answer 8

Created when the tenant remains in possession and the landlord accepts the rent but no new lease agreement is made

Question 9

The following notices are required by Illinois statute

Answer 9

Tenancy from Year to Year - 60 Days
Tenancy from Month to Month - 30 Days
Tenancy from Week to Week - 7 Days

Question 10

Define an Estate at Will

Answer 10

Gives the tenant the right to possess property with the landlords consent for an unspecified amount of time

Question 11

Lease agreements may be

Answer 11

Written
Oral
Implied

Question 12

The requirements of a valid lease are

Answer 12

Capacity to contract
Legal Objectives
Offer
Acceptance
Consideration

Question 13

Most leases require that the fenant provide some form of

Answer 13

A security deposit

Question 14

Neither the landlord nor the tenants is required to make any

Answer 14

Improvements to the leased property

Question 15

Its illegal to discriminate against prospective tenants according to the

Answer 15

Fair Housing Act

Question 16

Lessors of a residential property are required to

Answer 16

Maintain the dwelling units in a habitable condition

Question 17

Define Assignment

Answer 17

Occurs when a tenant transfers all of his leasehold interests to another person

Question 18

Define a Sublease

Answer 18

When a tenant transfers less than all the leasehold interest by leasing them to a new tenant

Question 19

Define a Nondisturbance Clause

Answer 19

A mortgage clause stating that in the event that property is foreclosed upon, the tenancies will not be terminated if they pay their rent

Question 20

Define a Renewal Option

Answer 20

An option that grants the lessee the privilege of renewing the lease

Question 21

Define a Purchase Option

Answer 21

An option that allows the tenant to purchase the property at a predetermined price

Question 22

Define a Right of First Refusal

Answer 22

A clause allowing the tenant to buy the property before the owner accepts an offer from another party

Question 23

Define a Gross Lease

Answer 23

A lease in which the tenant pays a fixed rent and the landlord pays all taxes, assessments, insurance, maintenance and utilities

Question 24

Define a Net Lease

Answer 24

A lease in which the lessee pays the basic rent plus all or some property charges

Question 25

Define a Percentage Lease

Answer 25

A lease in which the lessee pays basic rent plus a percent of gross sales

Question 26

Define a Graduated Lease

Answer 26

The rent increases at set future dates

Question 27

Define a Ground Lease

Answer 27

A lease in which fhe landowner leases unimproved lans to a tenant who agrees to erect a building on the land

Question 28

Define a Lease Purchase

Answer 28

Is used when a tenant wants to purchase the property but is unable to do so

Question 29

Define a Sale and Leaseback

Answer 29

The owners of property sell the property and then lease it back again for an agreed price

Question 30

Define an Agricultural Lease

Answer 30

When landowners often lease their land to tenant farmers, who provide the labor to produce and bring in a crop

Question 31

Define Actual Eviction

Answer 31

When a tenant breaches a lease or improperly retains leased premises

Question 32

Define Constructive Eviction

Answer 32

When the leased premises becomes unusable for the purpose stated in the lease