Chapter 3

Question 1

A bilateral contract in which the lessor promises to provide exclusive possession of the property to the lessee in return for the lessee’s promise to pay rent.

Answer 1

Lease

Question 2

The owner or landlord giving the lease is called..

Answer 2

Lessor

Question 3

The person receiving the lease is called..

Answer 3

Lessee/Tenant

Question 4

Money Paid for the use of leased property.

Answer 4

Rent

Question 5

The rights that the tenant acquires in the lessor’s property.

Answer 5

Leasehold Estate/Leasehold Interest or Tenancy

Question 6

Where do the acquired rights a tenant obtains through attach to? (the property or the lessor?)

Answer 6

Property

Question 7

Does the sale of property or transfer of ownership due to death of the lessor affect a lease?

Answer 7

No

Question 8

The various forms of residential leases are classified as…

Answer 8

1) Tenancy for years, 2) periodic tenancy, 3) tenancy at will, 4) tenancy at sufferance and 5) holdover tenancy.

Question 9

This type of residential lease has a specific timeframe which can be any length of time. It also does not require notice to terminate.

Answer 9

Tenancy for Years

Question 10

This type of residential lease has no specific ending date and automatically renews itself, going from period to period, week to week, month to month or year to year.

Answer 10

Periodic Tenancy

Question 11

This form of residential lease has no definite duration and exists at the will of the parties. In this instance the tenant can remain on premise as long as they choose, however the lessor retains the right to terminate the lease at their discretion.

Answer 11

Tenancy at Will

Question 12

This form of residential lease is created when a tenant wrongfully possesses the owner’s property.

Answer 12

Tenancy at Sufferance

Question 13

This form of tenancy is created when a lessor accepts the rent from a tenant with a terminated lease. Acceptance of rent is considered to be ratification of the tenants right to continue occupying the property.

Answer 13

Holdover Tenancy

Question 14

What are the essential elements to the formation of a residential lease?

Answer 14

1) Consideration, 2) Legal Purpose, 3) Offer, 4) Acceptance, 5) Competent Parties, 6) Description of the premises, 7) Rights and obligations of each party, 8) Starting Date, 9) Time and method of termination.

Question 15

When a tenant does NOT sign the lease however takes possession of the premises, this is called.

Answer 15

Acceptance by Ratification

Question 16

When a tenant transfers all of his or her rights to another person, that is called…

Answer 16

Assignment

Question 17

When a tenant transfers less than all of their rights under the lease while retaining some portion of interest, that is called

Answer 17

Sublet

Question 18

A sublease can also be called/considered…

Answer 18

Sandwich Lease

Question 19

This clause clearly states and designates responsibility of repairs or maintenance between the lessor and the lessee.

Answer 19

Repair and Maintenance Clause

Question 20

This clause clearly states improvement rights between the lessor and the lessee

Answer 20

Improvements Clause

Question 21

This clause describes which rights and responsibilities the lessor and less have if property becomes partially or completely destroyed.

Answer 21

Destruction Clause

Question 22

Contractual agreements that keep an offer open for a specified period of time, is called an…

Answer 22

Option

Question 23

The option given to buy a property, is called

Answer 23

Purchase Option

Question 24

The option given to extend the lease term under certain circumstances, is called

Answer 24

Renewal Option

Question 25

In some cases, what is required in order for options to become available?

Answer 25

Fee

Question 26

What happens if option expires without being utilized?

Answer 26

Fee is not refunded

Question 27

This type of option requires that the owner give the tenant the opportunity to purchase the property on the same terms being offered by other party.

Answer 27

First right of refusal

Question 28

Statements required by local, state and federal laws, is called…

Answer 28

Provisions of Law

Question 29

This clause states that each clause of the lease is a separate clause and that if one clause is unenforceable, it will not invalidate or affect any part of the lease.

Answer 29

Unenforceable Clause

Question 30

Residential leasing agents should be familiar with the types of lease provisions and clauses, however they must never…

Answer 30

Draft Them

Question 31

A residential leasing agent drafting lease provisions and clause is considered…

Answer 31

Unauthorized Practice of Law.