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Chapter 1 : Intro to Real Estate and Real Property > Chapter 5 : Leases > Flashcards

Chapter 5 : Leases Flashcards

1
Q

a lease

A

a contract to transfer the lessor’s rights to exclusive possession and use the property to the tenant for a specified period

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2
Q

the lease establishes

A

the length time the contract is to run and the amount the lessee is to pay for use of the property

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3
Q

the lease agreement combines 2 contracts

A

it is conveyance of an interest in the real estate

it is a contract to pay rent and assume other obligations

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4
Q

the lessor’s interest is called a ..

A

leased fee estate plus reversionary right

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5
Q

the statute of frauds in Illinois requires that lease agreements be in writing to be enforceable in court if they are more than..

A

a year

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6
Q

what’s the only lease agreement enforceable In court?

A

oral leases less than one year in duration

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7
Q

a leasehold

A

a tenants right to possess real estate for the term of the lease

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8
Q

a leasehold is generally considered

A

personal property

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9
Q

types of leasehold estates :

Estate for Years

A

continues for a definite period of time

could be years , months, weeks or even days

no notice is required to terminate because the lease has an expiration date

lessee has the right to use the premises fr the entire lease even when the lessor dies or sale of the property

if both parties agree the state of years can be terminated before expiration

otherwise neither party may terminate without showing that the lease agreement has been breached

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10
Q

types of leasehold estates :

Estate from Period to Period

A

a periodic tenancy, an agreement for indefinite time

has no expiration date, continues until proper notice of termination Is given

it is automatically renewable under the original terms of the agreement until one of the parties gives notice to terminate

payment and acceptance of rent extend the lease for another period

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11
Q

notice required to terminate periodic tenancy :

tenancy from year to year

A

at least 60 days written notice within a 4 month period

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12
Q

notice required to terminate periodic tenancy :

Tenancy from month to month

A

30 day written notice

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13
Q

notice required to terminate periodic tenancy :

tenancy from week to week

A

7 day written notice

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14
Q

Estate at will

A

gives the tenant the right to the property with the landlord’s consent

terminates by the death of either the landlord or tenant

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15
Q

estate at sufferance

A

when a tenant who lawfully continues possessing the premises without the landlord’s consent

known as a holdover

tenant fails to surrender the property after years and after lease expires it continues until eviction is processed

can also happen when a tenant is in breach of lease, is informed but not cured the breach

landlord can consider estate at sufferance as being willful withholding of possessions and can charge double the rent

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16
Q

lease application : leasing forms should be saved even if the tenant does not lease as they can…

A

provide written evidence that the manager isn’t illegally discriminating

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17
Q

residential lease includes acknowledgment from the tenant that the landlord may verify all information found on the application

A

rental history along with court and criminal records

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18
Q

evaluation of data : identity

A

must provide some form of identification, rental history, financial status, several references

landlords can check
credit scores
criminal history

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19
Q

Evaluation of data : rental history

A

manager should seek a family or company that will stay for a long time

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20
Q

financial status

A

a tenant with a history of erratic and delinquent payments should be turned down

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21
Q

residential

A

the manager should require a credit report from every applicant if required of one

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22
Q

credit report

A

obtained legally only with the applicants consent

many managers charge a non-refundable fee to help defray the costs involved in obtaining a credit report

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23
Q

a number of companies specialize in searching public records on behalf of the owner or property manager includes

A

past rental performance
nationwide credit reports
outstanding check reports
criminal history reports

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24
Q

rentak performance histories contain

A

past evictions
past due balances
noise complaints
insufficient funds checks
damages to the rental unit

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25
Q

requirements of a valid lease

A

capacity to contract

legal objectives

offer and acceptance

consideration

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26
Q

labor performed on the property could be

A

valid consideration the same as rent

27
Q

changes to the lease need to be

A

in writing

28
Q

use of premises

A

use restrictions in common leases for stores or commercial space

Ex) a real estate office is to be an office only, not any other purpose

29
Q

security deposit : if the tenant defaults on payment of rent or destroys the premises

A

the lessor may keep all r part of the deposit to compensate for the loss

30
Q

security deposit : landlords who receive a security deposit on properties containing five or more units may not…

A

withhold any part of the security deposit unless they give the tenant an itemized statement listing alleged damage

31
Q

security deposit : if the landlord doesn’t return the security deposit within 45 days of vacancy can be..

A

taken to court and if found unfaithful then they must pay the tenant double the security deposit amount, plus court costs and attorney fees

32
Q

residential leases of units in properties of 25 or more units and

A

held for more than sx months are required to pay the interest from the date of the deposit

33
Q

improvements : true or false

neither the landlord nor the tenant is required to make any improvements to the leased property

A

true

34
Q

improvements : the tenant may make improvement only with

A

the landlord’s permission

35
Q

accessibility : yes or no?

are tenants with disabilities permitted to make reasonable modifications to a property

A

yes but at their own expense and if it interferes with future tenant use then its required that the premises be restored to their original condition

36
Q

Maintenance of premises : what does maintain the dwelling unites a habitable condition mean?

A

landlords must make any necessary repairs to common areas such as hallways, stairs, and elevators and maintain safety features such as fire sprinklers and smoke alarms

37
Q

a landlord an be in violation by failing to provide access to (7)

A

drinkable and hot water
heat during cold weather
working electricity
a smoke detector
a working bathroom and toilet
removal of rodent or insect infestation
building code violations

38
Q

a tenant must give the landlord notice of defect and reasonable time to cure it

a remedy a tenant may choose are (3)

A

move out and terminate the lease if repairs are not made within reasonable time

stay and repair the problem and deduct the costs from the rent but it can not exceed the rent amount

sue for any damages resulting from the defective condition

39
Q

assignment and subleasing : when a tenant transfers less than all the leasehold interests by leasing them to a new tenant

A

the original tenant remains responsible for rent being paid by the new tenant and for any damage done to the property

40
Q

assignment and subleasing are only allowed when

A

a lease specifically permits them

41
Q

what’s a sandwich lease

A

ask Monse

42
Q

non disturbance clause : mortgage clause

A

the lender agrees not to terminate the tenancies of lessees who pay their rent should the lender foreclose on the landlord’s building

43
Q

options on lease : renewal option

A

grants the lessee the privilege of renewing the lease

44
Q

options of lease : purchase option

A

allows the tenant the right to purchase the property at a pre-determined price

45
Q

options on lease : right of first refusal clause

A

allows the tenant the opportunity to buy the property before the owner accepts an offer from another party

46
Q

there are three types of leases

A

gross lease
net lease
percentage lease

47
Q

gross lease

A

tenant pays a fixed rent

landlords pays all taxes, insurance, repairs, utilities, etc

48
Q

net lease

A

ask Monse

49
Q

Percentage Lease

A

a percentage from the annual gross income received by the tenant ding business on the leased property

50
Q

Variable lease

A

several types of leases allow for increases in the base rent during lease periods

51
Q

graduated lease

A

provides specific base rent increases at set future dates

52
Q

index lease

A

allows base rent to be increased or decreased periodically

53
Q

Ground lease

A

ask Monse

54
Q

a tenant who imply abandons leased property

A

remains able for the terms of the lease including rent

55
Q

the lease does not terminate if the parties..

A

die or if the property is sold

56
Q

the leas does not terminate unless - life estate

A

a lease from the owner of a life estate ends when the tenant’s life ends

57
Q

a lease does not terminate if the parties - tenancy at will

A

the death of either party terminates a tenancy at will

58
Q

sale clause

A

requires that the tenants be given some period of notice before the termination

59
Q

Breach of lease : when a tenant breaches any lease provision..

A

the landlord may sue the teat to obtain a judgement to cover past-due rent damages to the premises or other defaults

60
Q

Five Day Notice - Monetary Breach :

A

payment of the delinquent rent is due within five days. If the tenant fails to pay the rent the landlord may terminate the lease automatically and sue for possession without further notice

61
Q

Ten Day Notice - non-monetary Breach:

A

in cases which the tenant breach is other than non-payment of rent the landlord can serve the tenant with a 10 day notice. After the 10 days the landlord may sue for possession without further noice even if cured

62
Q

Landlord remedies : Actual Eviction

A

The landlord must serve notice on the tenant before commencing the lawsuit. When a court issues a judgement for possession to a landlord the tenant must vacate the property. If the tenant refuses to leave, the landlord can get a judgement for a court officer to forcibly remove the tenant and their belongings

63
Q

Tenant’s Remedies - Constructive Eviction

A

If a landlord breaches any clause of a lease agreement, the tenant has the right to sue and recover damages against the landlord. If the leased premises become unusable the tenant may have the right o abandon them.

64
Q
A

Chapter 1 : Intro to Real Estate and Real Property (6 decks)

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