Unit 18 Leases

Question 1

Define actual eviction

Answer 1

The legal process that results in a tenant’s being physically removed from leased premises. 358

Question 2

Define assessment

Answer 2

The imposition of a tax, charge, or levy, usually according to established rates. 7

Question 3

Define constructive eviction

Answer 3

Actions of a landlord that so materially disturb or impair a tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. 360

Question 4

Define ground lease

Answer 4

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease. Such leases are usually long-term net leases; the tenant’s rights and obligations continue until the lease expires or is terminated through default. 358

Question 5

Define holdover tenancy

Answer 5

A tenancy in which a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law. 352

Question 6

Define lease purchase

Answer 6

The purchase of real property, the consummation of which is preceded by a lease, usually long term, that is typically done for tax or financing purposes. 358

Question 7

Define leasehold estate

Answer 7

A tenant’s right to occupy real estate during the term of a lease, generally considered a personal property interest, although a long-term lease may be eligible for treatment as real property for financing purposes. 351

Question 8

Define security deposit

Answer 8

A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default or on destruction of the premises by the tenant. 354

Question 9

Define subletting

Answer 9

The leasing of premises by a lessee to a third party for part of the lessee’s remaining term. See also assignment. 224

Question 10

Lessee is the going to be occupying the property True or False

Answer 10

True

Question 11

Lessor is the person offering the lease the owner True or False

Answer 11

True

Question 12

Define month-to-month tenancy

Answer 12

A periodic tenancy under which the tenant rents for one month at a time. In the absence of a rental agreement (oral or written), a tenancy is generally considered to be month to month. 351

Question 13

Define nondisturbance clause

Answer 13

A mortgage clause stating that the mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgagee forecloses on the mortgagor-lessor’s building. 356

Question 14

Define renewal option

Answer 14

A clause in a lease that grants the lessee the privilege of renewing the lease. 356

Question 15

Define rent

Answer 15

A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties. 350

Question 16

Define reversionary right

Answer 16

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease. 350

Question 17

What is the Cheapest type of lease

Answer 17

Gross Lease as you are only paying the lease amount and nothing else