CH 4

Question 1

CAM?

Answer 1

Common area maintenance

Question 2

A purchaser of a commercial building would want the tenant to furnish a

Answer 2

Estoppel certificate

Question 3

Estoppel certificate

Answer 3

It is a document designed to give third party critical information on the relationship between your landlord and you as a tenant.

Question 4

When a perspective tenant has had credit problems, a lessor is most likely to request a

Answer 4

Guarantor

Question 5

Guarantor

Answer 5

Guarantor in a rental agreement is someone who signs their name to the contract and agrees to pay if the tenant is not able to pay

Question 6

A hold-harmless clause would likely be enforceable by a lessor of

Answer 6

Residential Property

Question 7

What is a hold-harmless clause?

Answer 7

A hold harmless clause is a statement in a legal contract stating that an individual or organization is not liable for any injuries or damages caused to the individual signing the contract.

Question 8

A clause that discourages a tenant from remaining in possession after the lease expires would be a

Answer 8

Holdover clause

Question 9

What is a Holdover clause?

Answer 9

Lease holdover occurs when a tenant continues to remain in possession of the leased property after the lease expires or terminates. The Holdover clause of an office lease usually specifies whether “holding over” is permitted, and at what increase in rent

Question 10

Joint tenants are in default, whom can the lessor sue?

Answer 10

Either or both.

Question 11

The tenant hires a contractor to remodel a store. The lessor would be concerned with-

Answer 11

A notice of non-responsibility

Question 12

A notice of non-responsibility

Answer 12

The notice of non-responsibility shields the owner from any lien stemming from the failure to order labor or supplies necessary to complete the project. This notice is used by landlords with tenants who do improvements on their property.

Question 13

The right to cancel a lease when the tenant’s sales are not up to expectations would be set fourth in the

Answer 13

Recapture clause

Question 14

Recapture clause

Answer 14

A provision usually found in percentage leases, especially in shopping-center leases, giving the landlord the right to terminate the lease - thereby recapturing the premises - in the event the tenant does not maintain a specified minimum amount of business.

Question 15

In CA, boldface eight-point type face would most likely be required in a residential lease that provides for

Answer 15

Automatic renewal if no notice is given

Question 16

Sales over the first tier of a percentage lease would likely lower by how much?

Answer 16

2%

Question 17

A tenant has a right to buy the property from a lessor, but this right only applies should the lessor decide to sell to another. If the lessor is not obligated to sell, this right would be an

Answer 17

Right of first refusal.

Question 18

What does this address in a lease: Arbitration

Answer 18

It provides for mandatory consensual binding arbitration of lessor/lessee disputes

Question 19

What does this address in a lease: Complete agreement

Answer 19

The parties acknowledge that there is no agreement other than is set forth in the lease.

Question 20

What does this address in a lease: Fixtures

Answer 20

It may provide what is (or isn’t) a fixture and removal rights, if any.