CHAPTER 8 QUIZ LEASING AND PROPERTY MANAGEMENT

Question 1

What is the term for a legal contract created when a property owner enters into an agreement with a tenant, giving the tenant the right to occupy and use real property, subject to terms and conditions?

Answer 1

Lease

Question 2

Who must sign a lease to make it valid?

Answer 2

The tenant and the landlord, or their authorized agent

Question 3

When the lessee (tenant) signs the lease, what contract element is satisfied?

Answer 3

Acceptance

Question 4

Lease contracts are used for…?

Answer 4

Both commercial and residential real estate

Question 5

When specific improvement provisions are included in a lease, giving the tenant the right to improve the property, they are sometimes referred to as…?

Answer 5

Leasehold improvements

Leasehold improvements allow the tenant to make improvements to the property. The remaining answer choices are not provisions found in a lease.

Question 6

Which of the following repairs is the landlord not required to make under the covenant of habitability?

Answer 6

Repair a tenant’s intentional damage to a wall

Question 7

Under which of the following circumstances can a landlord be absolved of their responsibility to provide a habitable dwelling unit?

Answer 7

None of the answer choices provided are correct.
BThe tenant signed away the requirement through the lease.
CThe tenant inspected the unit before moving in and didn’t find anything wrong.
DThe landlord inspected the unit before moving in and didn’t find anything wrong.

Question 8

Which of the following occurs when the landlord hasn’t upheld their end of the lease agreement resulting in the tenant not being able to occupy the leased property?

Answer 8

Constructive eviction

Question 9

Under which of the following scenarios is a landlord generally entitled to enter a leased premises?

Answer 9

All of the answer choices provided are correct
BTo conduct required inspections
CTo make repairs
DTo show the unit to prospective tenants

Question 10

When someone contracts with a property owner to lease real estate from them, one of the benefits they are getting is the right to possess the unit or parcel being leased. This is known as the right of?

Answer 10

Possession

Question 11

Under this type of lease, the landlord is responsible for paying all of the costs of operating and maintaining the property, including real estate taxes?

Answer 11

Gross lease

Question 12

If a tenant agrees to pay rent, property taxes and insurance premiums, what type of lease do they have?

Answer 12

Double net lease

Question 13

When the tenant pays rent, maintenance, property taxes and insurance, they have this type of lease?

Answer 13

Triple net lease

Question 14

Which of the following is not a type of net lease?

Answer 14

Quadruple net lease

Question 15

For which of the following lease terms might you find in a ground lease?

Answer 15

99-year lease

Ground leases are typically for very long periods of time. A 99-year lease term is very common in a ground lease.

Question 16

Which of these tenants is least likely to want to enter into a ground lease?

Answer 16

Independent insurance agent

Long-term tenants will most likely enter into a ground lease. An independent contractor, including an insurance agent, do not need long-term leases.

Question 17

When an oil and gas lease is set to expire, but drilling is underway, what usually happens?

Answer 17

The lease will remain in effect

Question 18

When a commercial tenant in a strip mall signs a double net lease, how is the amount of property taxes and insurance they pay calculated?

Answer 18

Prorated based on the size of the space they are renting

Question 19

What document establishes the guidelines for the agency relationship between a property manager and the property owner(s)?

Answer 19

The formal management agreement

Question 20

Cheryl is preparing a management agreement for a new client. What information can she use in the property description?

Answer 20

A legal description from the recorded property deed.

Question 21

In order to comply with federal regulations, ………… are responsible for reporting known hazards, such as radon in lead paint, to …………, and remediating any issues discovered after the agreement is signed.

Answer 21

owner(s), property manager

Question 22

Which fee typically covers basic services, like accounting, reporting, and tenant screening?

Answer 22

The management fee

Question 23

Which of the following is incurred when a property owner spends money to upgrade a building in an effort to add value and/or extend the useful life of the building?

Answer 23

Capital expense

Question 24

Money set aside by a property owner for long-term capital expenditures to a property is known as the…?

Answer 24

Capital reserve budget

Question 25

What does a leasehold estate entitle a tenant to do?

Answer 25

Temporarily possess, occupy and use real estate

Question 26

What term describes money a tenant pays up front, but gets back at the end of the lease term if the property is returned in substantially the same condition?

Answer 26

Security deposit

Question 27

Under an estate at sufferance, the landlord could go to court to have a trespassing tenant evicted. What is another possible remedy?

Answer 27

Accept the tenant for another similar lease term

Question 28

What is the usual effect of an estate at will tenant committing waste against the property (whether intentional or not)?

Answer 28

The estate at will is terminated

Question 29

What is the term for the tenant in a leasehold estate?

Answer 29

Lessee

Question 30

If the language of an estate at will lease says tenancy continues at the will or desire of the tenant, under what circumstances can the landlord terminate the lease?

Answer 30

The landlord may not be able to terminate the lease