Unit 17: Leases Flashcards

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Questions and Answers

Rent would BEST be described as?

The total balance owed under the terms of a lease.

Consideration for the use of real property. (correct)

Contractual consideration to a third party.

All monies paid by the lessor to the lessee.

If the lease covers land, such as a ground lease, what should be used?

The assessor's parcel number is sufficient to identify the property.

The street address is sufficient to identify the property.

A legal description must be used.

A legal description should be used. (correct)

For the protection of tenants, a mortgage of leased premises should include in the financing instrument?

A nondisturbance clause. (correct)

A warranty of habitability.

A special warranty.

A quiet title action.

A lessee who pays some or all of the property expenses has?

A net lease. Signup and view all the answers

A tenancy in which the tenant continues in possession after the lease has expired, without the landlord's permission, is?

A tenancy at sufferance. Signup and view all the answers

A lease should contain all of the following provisions EXCEPT?

A sale-and-leaseback clause. Signup and view all the answers

The death of either the landlord or the tenant will terminate the lease and the parties' heirs will NOT be bound by its terms under which of the following tenancies?

Tenancy at will Signup and view all the answers

Leases that run for 100 years or more?

Are prohibited in some states. Signup and view all the answers

Which type of leasehold estate lasts for a definite period of time and then ends?

Estate for years Signup and view all the answers

In the absence of a notice to terminate, a lease that continues automatically would be?

A periodic tenancy. Signup and view all the answers

An estate for years is a leasehold estate that?

Continues for a definite period. Signup and view all the answers

A lease is a contract between?

Lessor and lessee. Signup and view all the answers

Which of the following describes a net lease?

A lease in which the tenant pays rent, plus some—or most—of the operating expenses related to the property. Signup and view all the answers

An arrangement whereby the owner of property sells the property and then leases it back is called?

A sale and leaseback. Signup and view all the answers

A lease would be terminated by which of the following?

Expiration of the term in a lease for years. Signup and view all the answers

Which transaction is BEST described as involving a ground lease?

A landlord charges a commercial tenant separate amounts for the land and the leased building. Signup and view all the answers

Which of the following would automatically terminate a residential lease?

Destruction of the property. Signup and view all the answers

When a tenant holds possession of a landlord's property without a current lease agreement and without the landlord's approval, what can happen?

The landlord can file suit for possession. Signup and view all the answers

At the termination of a rental agreement, what happens to the lease?

The lease is discharged. Signup and view all the answers

An example of constructive eviction would be a tenant?

Who moves because the unit no longer has water. Signup and view all the answers

Two common forms of eviction are?

Constructive and actual. Signup and view all the answers

Under the terms of a net lease, which property expense would the commercial tenant NOT be responsible for?

Mortgage debt service. Signup and view all the answers

Study Notes

Rent

Rent is consideration for the use of real property, signifying an exchange of value for possession.

Ground Lease

Legal descriptions must be used for leases covering land, ensuring precise identification of the property.

Mortgage and Tenants

A nondisturbance clause in a mortgage protects tenants by ensuring their tenancy remains intact even if the property is foreclosed.

Lease Types

A net lease requires tenants to pay base rent plus property operating costs such as utilities, insurance, and taxes.
A tenancy at sufferance exists when a tenant remains post-lease expiration without landlord consent.

Lease Provisions

Essential lease provisions include the term of the lease, possession, and use of premises, but not a sale-and-leaseback clause.

Terminations

Tenancy at will is terminated by death of either party, ending mutual consent.
Leases lasting 100 years or more may be prohibited in certain states.

Estate Types

An estate for years has a definite duration with specific start and end dates while a periodic tenancy renews automatically unless terminated.

Lease Contracts

A lease is a contractual agreement between a lessor (landlord) and lessee (tenant), granting rights to occupy property.

Net Lease Definition

In a net lease, a tenant pays rent along with most operating expenses related to the property.

Sale and Leaseback

A sale and leaseback arrangement allows an owner to sell a property and lease it back, providing funds while retaining occupancy.

Conditions for Lease Termination

A lease can be terminated by the expiration of the lease term, not by the death of the tenant or the sale of the property.

Ground Lease Characteristics

Ground leases charge separate amounts for land and the building, creating distinct rental agreements.

Impact of Property Destruction

Renters face automatic lease termination if the property is destroyed, unlike other scenarios such as tenant death or non-payment.

Tenant at Sufferance

If a tenant occupies property without a current lease and without approval, the landlord is entitled to file suit for possession.

Lease Discharge

Upon termination of a rental agreement, the lease is discharged; any unpaid rent is not automatically forgiven.

Constructive Eviction

Constructive eviction occurs when a tenant leaves due to uninhabitable conditions, such as lack of water.

Types of Eviction

The two primary forms of eviction are constructive eviction, where tenants terminate their lease due to landlord neglect, and actual eviction, where landlords legally remove tenants.

Net Lease Responsibilities

In a net lease, tenants typically cover expenses like real estate taxes and maintenance, excluding mortgage debt service (landlord's payment obligations).

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Description

Test your knowledge on leases with these flashcards. Each card focuses on key concepts and definitions related to rental agreements and property law. Perfect for studying for real estate exams and understanding the fundamentals of leases.