Chapter 7 Flashcards by Rocky Acc

A lease is considered

Non freehold estate

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A woman agrees to rent her upstairs apartment to a friend for the next six months. The friend has
A. An estate for years
B. A periodic estate
C. A tenancy at will
D. Tenancy at sufferance

Estate for years

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Landlord in upstate New York agrees to rent his upstairs apartment to a tenant from month to month. Any arrangement the landlord must do what?
A. File a court suit to recover possession
B. Get at least 60 days notice from the day the rent is due
C. Give at least one months notice from the day before the rent is true
D. Simply refuse to accept the next months rent

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A Gross lease is most likely to be used for rental of
A. Apartment
B. Factory building
C. Land under a post office
D. Farm

A, apartment

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To be enforceable an apartment lease for a period longer than one year
A. Must be in writing
B. Must be motorized
C. Must include a legal description

A, because it’s more than one year

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A woman sells her six unit apartment building in Queens to a buyer. What does she need to do now?

The woman should turn over her security deposits to the new buyer

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Tenants lease has expired. The tenant did not leave nor did he negotiate a renewal lease, and the landlord does not want the tenant to stay there anymore. What is this tendency called?

Tenancy at sufferance

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At least provision giving the tenant the right to extend the lease for an additional period of time on set terms is called what?

An option to renew

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The clause in a lease that restricts the occupancy activities is called what?

A use clause

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If a tenant falls three months behind in rent payments, a landlord may
a. Turn down the heat
B. Move out the tenants possessions
C. Start a court suit for possession
D. All of these

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If a tenant falls three months behind rent payment and the landlord turns down the heat in retaliation, the tenant my move out and argue that she is free from any further obligations because the landlord has terminated the lease through what?

Constructive eviction

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Under the New York general obligation slaw, which of the following is correct?
A. Security deposits must always be held in trust or escrow accounts
B. Interest earned on security deposits belongs to the landlord
C. Security deposit can be commingled only under certain circumstances

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A ground lease is usually
A. A gross lease
B. Long term
C. Based on percentages
D. Terminable with 30 days notice

B long term

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The landlord must furnish a lead paint information booklet to tenants
A. Within 100 days after the lease is signed
B. If the building is intended exclusively for those older than 55
C. In any building constructed before 1978
D. In any residential property constructed before 1978

D, residential

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A woman manufactures NetWare in a small rented building. In addition to monthly rent she pays heat, electric, and property taxes on the building. What does she probably have?

A net lease

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New York, a tenant usually may sublet an apartment if what?

If the lease does not prohibit it

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If a homeowner says to his friend, I’ll let you read my attic apartment for $500 a month until the first of the year, and the front agrees, does this constitute a binding lease?

Yes

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A contract between an owner of real estate known as the lessor and a tenant known as the leesee that transfers the right of possession and use of the owners property, usually for specific period of time

A lease

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What is another term for a tenant

Lessee

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What is another term for landlord or owner of real estate

Lessor

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Why does a lease fall under the category of a non-freehold estate?

Because of the time restriction of possession of the property

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Estate in which the tenant holds the property for a definite period of time.

Non-freehold estate

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Constitutes an ownership and a property.

A freehold estate

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Do all leases fall within the non-freehold estate category?

Yes

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What are the three things that a lease agreement establishes?

The length of time the contract for possession of the premises is to run The amount to be paid by the leasee for the right to use the property Rights and obligations of the parties

True or false: The landlord grants the tenant the right to occupy the premises and use them only for purposes stated in the lease

True

What are the two things that are required for a lease to be enforceable under the New York State statute of frauds?

A lease for a term of longer than one year must be in writing All agreements involving the conveyance of a partial or whole interest in real property must be in writing

Do leases need to be signed by both the lesser and the Lessee?

Yes

Under the statute of frauds, a lease lasting for one year or shorter does not need to be in writing to be legally enforceable. Is this true or false?

True

A tenants right to occupy realty is called what?

Leasehold estate

What are the four most important leasehold estates?

1. Estate for years, 2. periodic estate, 3. Tenancy at will, 4. tenancy at sufferance

The leasehold estate that is for a definite period of time is?

Estate for years

Which leasehold estate automatically renews

Periodic estate

A leasehold estate that occurs for an indefinite period of time

Tenancy at will

Leasehold estate without the landlords consent.

Tenancy at sufferance

Can an estate for years be for weeks or days, or is it only for years?

Weeks, days, and years

A leasehold estate that has specific starting and ending dates.

Estate for years

Can a lease estate for years be terminated ahead of time, if so, how?

Yes, by mutual consent

Does an estate for years need to last for years or even one year?

Which leasehold estate does not have a specific expiration date?

Periodic lease

Which lease may run for month to month or week to week or year to year?

Periodic lease

Which lease may run for month to month or week to week or year to year?

Periodic lease

True or false: The agreement is automatically renewed for similar succeeding. Until one of the parties gives notice to terminate in a periodic lease.

True

A New York tenant who remains in possession of leased premises after expiration of the lease is known as a?

Holdover tenant, aka tenancy at sufferance

If a landlord accepts rent, a tenancy from month to month is created. True or false?

True

Not all clauses, like stating that a tenant will be charged double rent for the period they are in possession as a tenant is enforceable. What estate does this refer to?

Tenancy at sufferance

An estate that gives the tenant the right to possess with the consent of the landlord and for no definite time is a ?

Tenancy at will

How can tenancy at will be terminated?

It is automatically terminated by the death of either the landlord or the tenant, unlike other tenancies

How can tenancy at will be terminated ?

By giving proper notice

A lease may be written, oral, or implied. True or false?

True

What does the statue of frauds state for a lease to be enforceable?

If the term is greater than one year, it must be in written form.

What are the 8 essentials for a valid lease?

- A demising clause (the lessor agrees to let the premises and the lessee to take the premises - capacity to contract (the parties must be competent, 18 years of age or older) - a description of the leased premises - signatures by both parties - delivery: lease must be delivered by landlord to tenant with duplicate originals for each of them - a clear statement of the term (duration) of the lease - lease must be in writing if it’s for more than one year - specification of the rent and how it is to be paid

A contract between two or more competent parties having the capacity to enter into a contract

A lease

True or false: any decision to extend a lease should be in writing

True

Can the tenant sublease?

If the lease terms do not prohibit it

If you have a rental and rent to a tenant for fewer than 100 days, or have a studio apartment or zero bedroom loft, or a house exclusively intended for the elderly, are you required to give a booklet about lead paint hazard?

No, but for a normal lease you do have to

A landlord may want an extra deposit to ensure that any trade fixtures put up may be restored to its original state when removed. Where must these deposits go?

In a trust to avoid commingling and also because deposits belong to the tenant who gave it

What is Use of premises?

A lessor may restrict a lessees use of premises through provisions included in the lease. Important for commercial leases.

The landlord guaranteeing that the least property is fit for human habitation and that the tenant will not be subjected to any conditions that could endanger life, health, or safety. What is this known as?

Implied warranty and covenant of habitability

Undisturbed occupancy

Quiet enjoyment for the tenant

What is quiet enjoyment?

Undisturbed occupancy which means that so long as a tenant abide by the lease terms and conditions, this clause of quiet enjoyment applies to the occupant or tenants right to remain undisturbed by others

A written lease for a definite. Expires at the end of that time. No separate notice is required to terminate. Is this true or false?

True

Oral and written leases that do not specify a definite expiration date such as month to month, are terminated by?

Giving proper written notice

When the conditions of a lease are breached, a landlord may terminate and evict the tenant. How must this be handled?

Through court proceeding

True or false: The landlord who wishes to be rid of a tenant is allowed to use that to violence, change locks, discontinue essential services like water or heat, or sees the tenants possessions.

False

When a property is sold does the lease terminate?

No, The lease survives the sale and the new owner takes over and gets the rights of the tenant except in the case of a foreclosure proceeding when the subject is a commercial property

What are the three types of leases?

Gross lease, not lease, percentage lease

The tenant pays a fixed rental and the landlord pays all taxes, insurance, repairs, mortgage payments etc.

Gross lease

Which type of lease is most commonly used for residential rentals?

Gross lease

In addition to the rent, the tenant pays some or all of the operating expenses. which lease is this?

A net lease

Leases for commercial or industrial buildings, ground leases, and long-term leases are often which kind of lease?

Net lease

The tenant pays taxes, insurance, and all other expenses except debt services (mortgage payments). What is this net lease called?

A triple net lease (slang term)

Either a gross lease or net lease may be a what?

Percentage lease

Can a gross lease be a percentage lease?

Yes

Can a net lease also be a percentage lease?

Yes

This type of lease is normally used for retail business locations.

Percentage lease

Which type of lease is commonly used in shopping malls, shopping centers, and high profile retail locations such as fifth Avenue?

A percentage lease

Which lease provides for a minimum fixed rental fee plus a percentage of the tenants business income that exceeds a stated minimum?

A percentage lease

What is the stated minimum in a percentage least commonly referred to as?

Natural breakeven to compensate for occupancy costs

The owner of a cooperative apartment who buys shares in the corporation that owns the building does not specifically on the apartment. What does the owner receive instead?

A proprietary lease to the living unit

True or false, the percentage charged in percentage leases varies widely with the nature of the business and the location.

True

How do you calculate natural breakeven in regard to percentage leases?

Annual rent divided by percentage of sales = natural breakeven

What is it called when a tenant breaches Elise and the landlord Mayra gain possession there a suit for possession or summary proceeding of real estate?

Actual eviction

True or false, the landlord does not need to serve notice on the tenant before commencing the suit of actual addiction.

False, he must give a three day notice before filing a suit for possession

If a landlord reaches any clause of the lease agreement the tenant has the right to sue for damages. If an action or omission on the landlords part results in the leased premises becoming uninhabitable for the purpose intended in the lease, the tenant may have the right to abandon the premises. What is this action called?

Constructive eviction

What is constructive eviction?

Terminate the lease if the tenant can prove that the premises have become unusable because of the landlords neglect

In order to claim constructive eviction, what must the tenant do?

Actually move from the premises well the uninhabitable condition exists.

A debt service = ?

Your mortgage payment