AZ Real Estate Agent License 2020 > Estates 11 > Flashcards

Estates 11 Flashcards

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1
Q

When the Grantor “Will Re-Aquire” Property, what is he called?

A

Reverter -

When the Grantor “Will Re-Aquire” Property, He is Called a Reverter

Chap 11

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2
Q

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

Chap 11

.

A

Estate -

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

Chap 11

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3
Q

What are the two categories of Estates?

A

Estates (2 Categories) -

  1. Freehold Estate: (Fee Simple Absolute, Defeasible Simple, Life Estates)
  2. Leasehold Estate: (Estate for Years, Period to Period, Estate at Will - Permission, Estate at Sufference - Tenant Holding Over Wrongfully)

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4
Q

Which 3 types of Estates have an Ownership Interest?

A

Freehold Estates (Ownership Interest) -

Fee Simple Absolute: Highest Form, All Bundle of Rights Forever.

Deafeasible Fee Simple: (Conditional Ownership), if Violated Reverts Back to Grantor (reverter)

Life Estates - Interest Created by Life of a Certain Person.

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5
Q

Which Type of Estate Gives Right to Possess and Use of Another’s Property.

A

Leasehold Estate -

Gives Right to Possess and Use of Another’s Property.

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6
Q

What are the 3 Types of Freehold Estates?

A

Freehold Estates (Types) -

  1. Fee Simple Absolute (Highest Form of Ownership-Bundle of Rights Forever)
  2. Defeasible Fee Simple (Conditional)
  3. Life Estates (for Life of Certain Person)

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7
Q

Which Type of Freehold Estate gives Highest Form of Ownership, Absolute Ownership, and has all Bundle of Rights Forever?

A

Fee Simple Absolute-

Gives Highest Form of Ownership, Absolute Ownership and all Bundle of Rights Forever.

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8
Q

Which Type of Freehold Estate gives Conditional Ownership, and Reverts Back to Grantor (Reverter), if violated?

A

Defeasible Fee Simple -

Conditional Ownership, if violated Reverts Back to Grantor (Reverter).

  1. Fee Simple Determinable (If Condition Occurs Ownership Ends)
  2. Fee Simple Subject To Condition Subsequent (Condition Occurs Ownership May End)
  3. Fee Simple Subject To Executory Limitation (Passes to 3rd Party)

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9
Q

Which Type of Freehold Estate gives Ownership Interest to a Life Tenant?

A

Life Estates -

Gives Ownership Interest to Certain Person (Life Tenant) for Their Life.

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10
Q

Conv_______ L__ Estate -

Estate created by One Person for Another Person (Life Tenant).

  1. Interest Cannot be “Willed”
  2. Waste Cannot be Committed.
A

Conventional Life Estate -

Estate created by One Person for Another Person (Life Tenant).

  1. Interest Cannot be “Willed”
  2. Waste Cannot be Committed.

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11
Q

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

A

Estate -

Degree or Extent of Interest a Person has in Real Property. Synonymous with Right, Title, Interest, Tenancy, and Equity.

Chap 11

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12
Q

Deliberate Damage to Property by Life Tenant is?

A

Waste -

Deliberate Damage to Property by Life Tenant

Chap 11

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13
Q

“Interest” held by Grantor (Reverter) by which Grantor will Re-Aquire Interest is called?

A

Reversionary Interest (Estate in Reversion) -

“Interest” held by Grantor (Reverter) by which Grantor will Re-Aquire Interest.

Example: Son creates life estate for Mom and at Mom’s death interest “reverts back” to Son.

  1. Mom holds a life estate (Warranty Deed)
  2. Son holds a Reversionary Interest (Estate in Reversion)

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14
Q

Life Estate example, What Type of “Interest” Does Son hold If:

  1. Mom holds Life Estate
  2. Son is the Grantor Which will Re-Aquire Estate.
A

Reversionary Interest (Estate in Reversion)

Life Estate example where:

  1. Mom holds Life Estate
  2. Son is the Grantor Which will Re-Aquire Estate.

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15
Q

An Interest held by a Another Person Than the Grantor by which they will Acquire a Greater Interest in the Future (ex: death of grantor)?

A

Remainder Interest (Person is: Remainderman) -

An Interest held by a Another Person Than the Grantor by which they will Acquire a Greater Interest in the Future (example: death of grantor).

Chap 11

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16
Q

Freehold Estates (Ownership Interest) -

F__ S______ Ab______: Highest Form, All Bundle of Rights Forever.

D________ F__ S______: (Conditional Ownership), If Violated Reverts Back to Grantor (reverter)

L___ Es_____ - Interest Created by Life of a Certain Person.

A

Freehold Estates (Ownership Interest) -

Fee Simple Absolute: Highest Form, All Bundle of Rights Forever.

Deafeasible Fee Simple: (Conditional Ownership), if Violated Reverts back to Grantor (reverter)

Life Estates - Interest Created by Life of a Certain Person.

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17
Q

Estate in Rem_____ (Rem_______ In______)

Son created Life Estate for Mom. Son is Grantor but Holds No Interest. Sister will Acquire Interest upon Mom’s death. What interest will Sis hold?

A

Estate in Remainder (Remainder Interest) - Sis holds this interest.

Life Estate where: Son creates Life Estate for Mom. Son is Grantor but holds No Interest. Sister will acquire interest upon Mom’s death.

Chap 11

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18
Q

Life Estate where Mom conveys Fee Simple Title to Son, and holds Life Estate for Herself.

What type of interest does Son hold?

A

Son holds - Remainder Interest (Estate in Remainder)

Life Estate where Mom conveys Fee Simple Title to Son, and holds Life Estate for Herself. Son will hold Greater Interest in Future

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19
Q

Type of Estates that gives Right to Possess and Use Another’s Property. The Rights are Evidence by Lease (Demise)?

A

Leasehold Estates (Conditional Ownership) -

Types of Estates that gives Right to Possess and Use of Another’s Property . The Rights are Evidence by Lease (Demise)

Chap 11

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20
Q

Leasehold Estates Tenancies -

  1. Estate for _____ (Tenancy) - Ending Date and No Notice Needed
  2. Estate from _______ - Indefinite Period and *****NOTICE NEEDED******
  3. Estate at ______ - Unspecified Permission and No Notice Needed
  4. Estate of _________- Hold-over after Expiration
A

Leasehold Estates Tenancies -

  1. Estate for Years (Tenancy) - Ending Date and No Notice)
  2. Estate from Period to Period - Indefinite Period ****NOTICE NEEDED*****
  3. Estate at Will - Unspecified Permission/No Notice
  4. Estate of Sufferance - Hold-over after Expiration

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21
Q

Which Leasehold Estate has a Ending Date, but Requires “No Notice” to Terminate?

A

Estate For Years Tenancy (ENDS) -

  1. Ending Date (Specified Time)
  2. No Notice - to terminate

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22
Q

Which Leasehold Estate has an Indefinite Duration, and REQUIRES NOTICE to terminate?

A

Estate Period to Period -

  1. Indefinite Duration (No End Date) - Month to Month, Year to Year
  2. REQUIRED ****NOTICE NEEDED****

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23
Q

Which Leasehold Estate gives

  1. Permission/Privilege to Use
  2. Unspecified Time Frame
  3. No Notice** to **Terminate
A

Estate at Will

  1. Permission/Privilege to Use
  2. Unspecified Time Frame
  3. No Notice to Terminate

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24
Q

H________

Tenant Remains on Property After Lease Expires is What Type of Tenancy?

A

Holdover Tenancy -

Tenant Remains on Property After Lease Expires

Chap 11

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25
**_A Lease_ in which the Lessee (Becomes Sub-Lessor) by _Entering_ into a "_Separate Lease_" with Another Lessee (Who Become Sub-Lessee)** **What Type of Lease**
**Sublease (Sandwich Lease)** - **A Lease** in which the **Lessee (becomes Sub-Lessor)** by **_Entering_ into a "_Separate Lease_"** with **Another Lessee (Who Becomes Sub-Lessee)**. **Sub-Lessee Pays Rent to Lessee/Sub-Lessor, Who Pays Landlord/Lessor.** **Chap 11**
26
**A Lease where the _Lessee (Assignor)_ _Transfers All Rights_ to Lease to _3rd party (Assignee)_** **3rd Party Takes Over Lease, and Pays Lessor Directly** **What is This Type of Lease?**
**Assignment of Lease** - **A Lease where the _Lessee (Assignor)_ _Transfers All Rights_ to Lease to _3rd party (Assignee)_** **3rd PartyTakes Over Lease and** **Pays Lessor Directly** **Chap 11**
27
**Liability in a Sublease (Sandwich)** 1. **Sandwich** - **Sub-Lessee (2nd Lessee) Liable to Orig. Lessee (Sub-Lessor)** * **Liable to Landlord/Lessor - \_\_\_\_\_\_** 1. **Assignment** - **Assignor-Lesee and Assignee (3rd Party) -** * **Liable to Landlord/Lessor - \_\_\_\_\_\_**
**Liability in a Sublease (Sandwich)** 1. **Sandwich** - **Sub-Lessee (2nd Lessee) Liable to _Orig. Lessee (Sub-Lessor)_** * **Liable to Landlord/Lessor - _Orig Lessee(Sub-Lessor)_** 1. **Assignment** - **Assignor-Lessee and Assignee (3rd Party)** * **Liable to Landlord/Lessor - _Both_** **Chap 11**
28
**Liability in Assignment** - 1. **_Assignor_ Re-Asigns Lease to (3rd Party)** 2. **_Assignee/Sub-Lessee_ (Takes of Over Lease) and PAYS LANDLORD RENT** 3. *Who is Liable to Landlord for non-payment?*
**Liability in Assignment** - 1. **_Assignor_ Re-Asigns Lease to (3rd Party)** 2. **_Assignee/Sub-Lessee_ (Takes of Over Lease) and PAYS LANDLORD RENT** 3. **Liable to Lessor/Landlord - Both**
29
**Rent stated in Lease** is called?
**Contract Rent -** **Rent stated** in Lease **Chap 11**
30
**Current Market Rent** that could be obtained is called?
**Economic Rent** - **Current Market Rent** that could be obtained **Chap 11**
31
**Lease in which** the "**Economic Rent is higher**" than **Contract Rent**
**Positive Leasehold** - Lease in which the **"Economic Rent is higher"** than **Contract Rent.** **Chap 11**
32
**Freehold Estates (Ownership Interest)** - 1. **Fee Simple Ab\_\_\_\_\_\_\_**: Highest Form, **Bundle of Rights ForeverV** 2. **D\_\_\_\_\_\_\_\_\_ Fee Simple**: **(Conditional Ownership),** If Violated Reverts Back to Grantor (Reverter) 3. **L\_\_\_\_ Estates** - Interest Created by **Life of a Certain Person.**
**Freehold Estates (Ownership Interest)** - 1. **_Fee Simple Absolute_**: Highest Form, **Bundle of Rights Forever.** 2. **_Deafeasible Fee Simple_**: **(Conditional Ownership)**, If Violated Reverts Back to Grantor (Reverter) 3. **_Life Estates_** - Interest Created by **Life of a Certain Person.** **Chap 11**
33
**Lease** in which the **"Contract Rent is higher"** than the **Economic rent.**
**Negative Leasehold** - Lease in which the **"Contract Rent is higher"** than the **Economic Rent** **Chap 11**
34
**T\_\_\_\_\_\_ Im\_\_\_\_\_\_\_\_\_** **_Alterations_ or _Improvements_** **to a** **"_Leased Space_"** **to Configure the _Space for the Tenant's Needs_**. **Made by Owner or Leaseholder to _Make it More Appealing_ or Useful for Tenant.**
**Tenant Improvements** - **_Alterations_ or _Improvements_** **to a** **"_Leased Space_"** **to Configure the _Space for the Tenant's Needs_**. **Made by Owner or Leaseholder to _Make it More Appealing_ or Useful for Tenant.** **Chap 11**
35
**Made up of** **_Roof_, _Walls_, _Floor_, _Windows_, and _Doors_**. **Everything that Separate the Inside** **of a Building From the Outside!**
**Building Shell** - **Made up of** **_Roof_, _Walls_, _Floor_, _Windows_, and _Doors_**. **Everything that Separate the Inside** **of a Building From the Outside!** **Chap 11**
36
**C\_\_\_\_\_\_\_ of Oc\_\_\_\_\_\_\_** - **Gov Cert** **_Government Certificate_** stating **Commercial** **Building is in Compliance with "_Building Codes_"** and **"_Suitable for Occupancy_"**
**Certificate of Occupancy** - **Gov Cert** **_Government Certificate_** stating **Commercial Building is in Compliance with "_Building Codes_"** and **"_Suitable for Occupancy_"** **Chap 11**
37
**(CAMs) Com\_\_\_ Area M\_\_\_\_\_\_\_\_ Charges** - **_Fees charged_ to _Commercial Tenants_** **for Parking Lots, Walkways, Area Lighting etc.**
**(CAMs) Common Area Maintenance Charges** - **_Fees charged_** to **_Commercial Tenants_** **for Parking Lots, Walkways, Area Lighting etc.** **Chap 11**
38
**Ex\_\_\_\_\_ St\_\_\_ - (Tenant Pays Increase Tax and Utilities)** 1. _**Landlord's** **Operating Expenses**_ - **This Provision Limits** 2. **_Tenant Pays Increases In_ - Ta\_\_, He\_\_\_\_/Co\_\_\_\_\_.**
**Expense Stop - (Tenant Pays Increase Tax and Utilities)** 1. **_Landlord's Operating Expenses_ - This Provision Limits** 2. **_Tenant Pays Increases In_ - Taxes, Heating/Cooling.** **Chap 11**
39
**Development _Project_** by which **Developer Completes Building, and it becomes "Move in Ready"**
**Turnkey Project -** **Development** **_Project_** by which **Developer Completes Building, and it becomes "Move in Ready"** **Chap 11**
40
**7 Ways to Terminate a Lease** - 1. **Sur\_\_\_\_\_ and Acc\_\_\_\_\_\_\_** 2. **Exp\_\_\_\_\_** **of Term** **(Estate for Years - Ends)** 3. **Em\_\_\_\_\_ Dom\_\_\_\_** 4. **Actual Ev\_\_\_\_\_** **(Breach of Tenant**) 5. **Constructive Ev\_\_\_\_\_** (**Breach of Landlord**) 6. **Dest\_\_\_\_\_\_** **of Property** 7. **Foreclosure of Mor\_\_\_\_\_\_** **(Protect Tenants At Forclosure Act - 90 days)**
**7 Ways to Terminate a Lease** - 1. **Surrender** **and Acceptance** 2. **Expiration** **of Term (Estate for Years - Ends)** 3. **Eminent Domain** 4. **Actual Eviction (Breach of Tenant)** 5. **Constructive Eviction** **(Breach of Landlord**) 6. **Destruction** **of Property** 7. **Foreclosure of Mortgage** **(Protect Tenants At Forclosure Act - 90 days)** **Chap 11**
41
**Surr\_\_\_\_\_\_ and A\_\_\_\_\_\_\_\_** - **Mutual Agreement** **to End** **Lease is Called**
**Surrender and Acceptance** - ## Footnote **Mutual Agreement to End the Lease** **Chap 11**
42
**Estate for Years** how does this terminate?
**Estate Tenancy for Years (Ends) -** **Ending Date (Expiration of Term)** Terminates Lease - **No Notice** **Chap 11**
43
**Eminent Domain - Condem\_\_\_\_\_\_\_ Clause** **Clause that "Cancels Lease"** **if Eminent Domain is exercised.** (Usually found in commercial lease).
**Eminent Domain - Condemnation Clause** **Clause that "Cancels Lease**" **if Eminent Domain is exercised.** (Usually found in commercial lease). **Chap 11**
44
**A\_\_\_\_\_ E\_\_\_\_\_\_\_ - (Tenant Breach)** 1. When **Tenant fails to Perform Obligations**, 2. **_Lessor Sues for Possession_**.
**Actual Eviction - (Tenant Breach)** 1. When **Tenant fails to Perform Obligations,** 2. **_Lessor Sues for Possession_**. **Chap 11**
45
**C\_\_\_\_\_\_\_\_ E\_\_\_\_\_\_\_ - (Landlord Breach)** When **Landlord fails to Perform** **Obligations.** **_Tenant_ _can_ _Terminate_ and Sue for Damages.**
**Constructive Eviction - (Landlord Breach)** When **Landlord fails to Perform Obligations.** **_Tenant_ _can_ _Terminate_ and Sue for Damages.** **Chap 11**
46
**Can Destruction of Property Terminate a Lease?**
**Yes -** Destruction of property can terminate a lease **Chap 11**
47
**"Protecting Tenants at Foreclosure Act"** - 1. **Give Tenants Min of ___ days and _Notice to Vacate_ OR** 2. **Honor Remaining Term of Lease - if Greater than 90 days.**
**"Protecting Tenants at Foreclosure Act"** - 1. **Give Tenants Min of 90 days and _Notice to Vacate_. OR** 2. **_Honor Remaining Term_ of Lease if Greater than 90 days.** **Chap 11**
48
**How Does Death Effect a _Lease_ or _Sale of Property_?**
**How Death Effects Lease/Sale of Property** - 1. **_Death (Lessor/Lessee)_** - **Does Not Terminate!** 2. **_Sale of Property_** - **Does Not Terminate** **Chap 11**
49
**Lessor's Rights -** 1. **Receives R\_\_\_** 2. **Rev\_\_\_\_\_\_\_\_ Right** (termination of lease)
**Lessor's Rights -** 1. Receives **Rent** 2. **Reversionary Right** (termination of lease) **Chap 11**
50
**Right of Q\_\_\_\_\_ En\_\_\_\_\_\_** - ## Footnote **Use of Property without Inter\_\_\_\_\_\_\_\_\_ by Lessor or others Claiming Superior Title.**
**Right of Quiet Enjoyment** - **Use of Property without Interference** **by Lessor** or others **Claiming Superior Title.**. **Chap 11**
51
**Tr\_\_\_ Fi\_\_\_\_\_\_ - Operation of Biz** 1. **_Tenant's Personal Property_** used in **"Operation of Business"****(Examples: Draperies, Machinery**.) 2. **Must "_Remove_" before Termination of Lease.**
**Trade Fixtures - Operation of Biz** 1. **_Tenant's Personal Property_** used in Operation of Business **(Examples: Draperies, Machinery)**. 2. **Must "_Remove_" before Termination of Lease** **Chap 11**
52
**Ownership is created for Life of a Person,** **What is Holder Called**?
**Life Tenant -** When ownership is created for life of a person, that person is called a Life Tenant. **Chap 11**
53
**Life Estate for Mom and at Mom's Death will Revert Back to Grantor (Son), is What Type of Estate?**
**Estate in Reversion -** Life Estate for Mom and at Mom's Death will Revert Back to Grantor (Son) **Chap 11**
54
**_Trade Fixtures_ - Biz Operations** 1. **Tenant's _Personal Property_** used in **"_Operation of Business_**." **Ex: Draperies, Machinery** 2. **Must "R\_\_\_\_\_" before Termination**
**_Trade Fixtures_ - Bus Operations** 1. **Tenant's Personal Property** used in **"Operation of Business"** **Ex: Draperies, Machinery**. 2. **Must "_Remove_" before Termination** **Chap 11**
55
**Grantor Creates Life Estate for Mom, and After Her Death it Reverts to Sister. What type of Estate?**
**Estate In Remainder -** **Grantor Creates Life Estate for Mom, and After Her Death it Reverts to Sister.** **Sister also known as Remainderman.** **Chap 11**
56
**When an Estate is created for One Person, but Reverts to Another, Other Than Grantor. That Person is Called?**
**Remainderman -** **When an Estate is created for One Person, but Reverts to Another, Other Than Grantor.** **Chap 11**
57
Another word for Lease is?
**Demise -** Another word for **Lease** **Chap 11**
58
Another word for Landlord
**Lessor -** Another word for **Landlord** **Chap 11**
59
Another word for Tenant
**Lessee -** Another word for Tenant **Chap 11**
60
**Estate at S\_\_\_\_\_\_\_\_\_\_ -** **Existing Lease Terminated**, but "**_Tenant is "Holding Over_" Wrongfully**. **_Rent Neither Paid/Accepted._**
**Estate at Sufferance -** **Existing Lease Terminated**, but **"_Tenant is "Holding Over_" Wrongfully**. **_Rent Neither Paid/Accepted._** **Chap 11**
61
**F\_\_\_\_\_\_ Entry and D\_\_\_\_\_\_ Action** **A _Court Proceeding_ used to Evict a Tenant** for **Breach of One or More Provisions of the Lease Agreement.** **Valid Reasons for Eviction May Include:** 1. **Failure to Pay Rent on time** 2. **Harboring Pets or Persons "Not Authorized" to Reside at the Premises Under the Lease** 3. **Illegal or Criminal Activity on the Property**
**Forceble Entry & Detainer Action -** **A _Court Proceeding_ used to Evict a Tenant** for **Breach of One or More Provisions of the Lease Agreement.** **Valid Reasons for Eviction May Include:** 1. **Failure to Pay Rent on time** 2. **Harboring Pets or Persons "not authorized" to Reside at the Premises Under the Lease** 3. **Illegal or Criminal Activity on the Property** **Chap 11**
62
**Gr\_\_\_ Lease - (Lessor Pays Expenses)** 1. **Rent is a "Fi\_\_\_ Amount" For Tenant.** 2. **Lessor Pays ALL "Property Ex\_\_\_\_\_."** **Gross - Without Deduction**
**Gross Lease - (Lessor Pays Expenses)** 1. **Rent is a "Fixed Amount" For tenant.** 2. **Lessor Pays ALL "Property Expenses."** **Gross - Withiout Deduction** **Chap 11**
63
**_Net Lease aka Triple Net Lease_ - (Tenant Pays Expenses)** **_Tenant Pays_**: 1. **Fixed Am\_\_\_\_\_ Rent**, plus 2. **Property Expenses, Utilities, Real Estate T\_\_\_\_, Ins\_\_\_\_\_ Premiums, Maintenance** **Landlord Pays:** 1. **Mor\_\_\_\_\_ (Debt Service)**
**_Net Lease aka Triple Net Lease_ - (Tenant Pays Expenses)** **_Tenant Pays_**: 1. **Fixed Amount Rent**, **PLUS** 2. **Property Expenses, Utilities, Real Estate Taxes, Insurance Premiums, Maintenance** **Landlord Pays:** 1. **Mortgage (Debt Service)** **Chap 11**
64
**Percentage Lease - (% of Gross Sales Paid)** 1. **Base Minumum Rent paid, plus % of Gr\_\_\_ S\_\_\_ Volume** 2. **Common: Retail Space Ex: Shopping Malls**
**Percentage Lease - (% of Gross Sales Paid)** 1. **Base Minimum Rent paid, plus % of Gross Sales Volume** 2. **Common: Retail Space Ex: Shopping Malls** **Chap 11**
65
**Lease for "Land Only"**
**Ground Lease -** Lease for **"Land Only"** **Chap 11**
66
**Sale Leaseback - (Rent Tax Deductable)** **Seller sells _Property to Investor_, which Leases Property Back to S\_\_\_\_\_.** **_Benefits to Seller (Tenant)_** 1. **Frees up Working Ca\_\_\_\_\_** 2. **Rent - Tax Ded\_\_\_\_\_\_** **_Disadvantages to Seller (Tenant)_** 1. **No More Dep\_\_\_\_\_\_ or Ap\_\_\_\_\_\_ for Taxes**
**Sale Leaseback - (Rent Tax Deductable)** ***Seller sells _Property to Investor_, which Leases Property Back to Seller.*** **_Benefits to Seller (Tenant)_** 1. **Frees up Working Capital** 2. **Rent - Tax Deduction** **_Disadvantages to Seller (Tenant)_** 1. **No More Depreciation or Appreciation for Taxes** **Chap 11**
67
**Grad\_\_\_\_\_\_ Lease - (Rent Increase/Decrease)** **Lease with an Es\_\_\_\_\_\_ Clause** that calls for **_Increase/Decreases in Rent_ at specified intervals.**
**Graduated Lease - (Rent Increase/Decrease)** **Lease with an Escalator Clause** that calls for **_Increase/Decreases in Rent_ at specified intervals.** **Chap 11**
68
**Es\_\_\_\_\_\_\_\_ Clause -** 1. **_Lease or Contract_: Guarantees a Change in the Agreement Price _Once a Particular Factor Beyond Control of Either Party_ Affecting the Value has Been Determined (Ex: Inflation)** 2. **_Purchase Contract_:** **Buyer Will Pay** **a Certain Amount of** **Money Above the Hi\_\_\_\_\_ Offer** **the Seller Receives.** 3. **_Commercial Leases_:** **_Rent Increases by %_** **and Tide to Consumer Price Index. _Operating Expenses Increase_ by Annual Budget Basis and Collected as Rent Increases.**
**Escalator Clause -** 1. **_Lease or Contract_: Guarantees a Change in the Agreement Price _Once a Particular Factor Beyond Control of Either Party_ Affecting the Value has Been Determined (Ex: Inflation)** 2. **_Purchase Contract_:** **Buyer Will Pay a Certain Amount of Money above the Hi\_\_\_\_\_ Offer** **the Seller Receives.** 3. **_Commercial Leases_:** **_Rent Increases by %_** and **Tide to Consumer Price Index. _Operating Expenses Increase_ by Annual Budget Basis and collected as Rent Increases.** **Chap 11**
69
**Lease with Rent is Tied to an Index, such as _Consumer Price Index_. Can Go Up or Down.**
**Index Lease -** **Lease with Rent is Tied to an Index, such as _Consumer Price Index_. Can Go Up or Down.** **Chap 11**
70
**An\_\_\_\_ Lease - (Major Tenant)** **Lease with a _Major Tenant_ such as a "Dep\_\_\_\_\_\_ Store or Supermarket."**
**Anchor Lease - (Major Tenant)** **Lease with a _Major Tenant_ such as a "Department Store or Supermarket."** **Chap 11**
71
**Gift of Personal Property through a Will**
**Bequest (Legacy)** - **Gift of Personal Property** through a Will **Chap 11**
72
**C\_\_\_\_\_\_\_** **The Life Estate that a Husband has in the Estate of his Deceased Wife**
**Curtesy -** **The Life Estate that a Husband has in the Estate of his Deceased Wife** **Chap 11**
73
**B\_\_\_\_\_\_ (Legacy)** **_Gift of Personal Property_ through a "_Will_."**
**Bequest (Legacy)** - ## Footnote **Gift of Personal Property through a "_Will_."** **Chap 11**
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**L\_\_\_\_ O\_\_\_\_\_\_ -** **_Lease_** **with _Option to Buy or Re-Lease_. Option is a Right to Buy or Lease a Property within "_Specified Period_," for a "_Specified Price_" and "_Terms_."**
**Lease Option -** **_Lease_** **with _Option to Buy or Re-Lease_. Option is a Right to Buy or Lease a Property within "_Specified Period_," for a "_Specified Price_" and "_Terms_."** **Chap 11**
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**B\_\_\_\_\_\_ (Legacy)** **Gift of Personal Property by _Will_**
**Bequest (Legacy)** - ## Footnote **Gift of Personal Property by _Will_** **Chap 11**
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**(CAMs) Common Area Maintenance Charges** - ## Footnote **Fees Charged to _Commercial Tenants_ for P\_\_\_\_ Lots, Walkways, Area Lig\_\_\_\_ etc.**
**(CAMs) Common Area Maintenance Charges** - ## Footnote **Fees Charged to "_Commercial Tenants_" for Parking Lots, Walkways, Area Lighting etc.** **Chap 11**
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**Trade Fixtures - Biz Operations** 1. **Tenant's Pe\_\_\_\_\_\_ Property used in "Operation of Business." Ex: Draperies, Machinery** 2. **Must "R\_\_\_\_\_" before Termination**
**Trade Fixtures - Biz Operations** 1. **Tenant's Personal Property** used **in "Operation of Business."** **Ex: Draperies, Machinery** 2. **Must "Remove" before Termination** **Chap 11**
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**Ex\_\_\_\_\_\_ S\_\_\_\_ - (Tenant Increase Tax-Utilities)** 1. **Landlord's Op\_\_\_\_\_\_ Ex\_\_\_\_\_\_\_ (Provision Limits Expenses)** 2. **Tenant pays _Increases_ in _Taxes_, and _Utilities_ such as _Heating/Cooling_.**
**Expense Stop - (Tenant Increase Tax-Utilities)** 1. **Landlord's Operating Expenses (Provision Limits Expenses)** 2. **Tenant pays _Increases_ in _Taxes_, _Utilities_ such as _Heating/Cooling_.** **Chap 11**
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**Def\_\_\_\_\_\_\_ F\_\_\_\_ S\_\_\_\_\_\_** - ## Footnote **Conditional Ownership, if Violated Reverts Back to Grantor (Reverter).**
**Defeasible Fee Simple** - **Conditional Ownership, If Violated Reverts Back to Grantor (Reverter).** 1. **Fee Simple Determinable** (If Condition Occurs Ownership Ends) 2. **Fee Simple Subject To Condition Subsequent** (Condition Occurs Ownership May End) 3. **Fee Simple Subject To Executory Limitation** (Passes to 3rd Party) **Chap 11**
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**_Lease in a Cooperative_ in Which the Tenant has the Right to Rent a Particular Unit From a Corporation. (Usually In a Corporate Lease)**
**Proprietary Lease -** **_Lease in a Cooperative_ in Which the Tenant has the Right to Rent a Particular Unit From a Corporation. (Usually In a Corporate Lease)** **Chap 11**
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**Section 8 Lease** **"Federal R\_\_\_ Subsidy Program" for Low-to-Moderate Inc\_\_\_\_ Family that "Pays a Portion" of the Tenant's Rent to the Landlord.**
**Section 8 Lease -** **_Federal Rent Subsidy Program_ for _Low-to-Moderate Income Families_ that "Pays a Portion" of the Tenant's Rent to the Landlord.** **Chap 11**
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**Freehold/Lease Estates -** 1. **Fee Simple** - **Hi\_\_\_\_\_ Own\_\_\_\_\_\_** 2. **Defeasible Fee Simple - Con\_\_\_\_\_\_\_ Ownership** 3. **Life Estate - Interest for Life of Another P\_\_\_\_\_** 4. **Leasehold Estate - Right to Pos\_\_\_\_\_ and Use of Another Property**
**Freehold/Lease Estates -** 1. **Fee Simple** - Highest Ownership 2. **Defeasible Fee Simple** - Conditional Ownership 3. **Life Estate** - Interest for Life of Person 4. **Leasehold Estate** - Right to Possess and Use Another's Property **Chap 11**
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**Types of Tile -** 1. **Severalty** - Sole and Separate 2. **Community** - Property in Marriage (Heirs). 3. **CPWRS** - Passes to Surviving spouse 4. **JTWRS** - Passes to Surviving Joint Tenants - **NO CORPS** **(Time Title Interest Possess)** 5. **Tenants in Common** - Undivided Interests, Heirs, **(Possession)**
**Types of Tile -** 1. **Severalty** - Sole and Separate 2. **Community** - Property in Marriage (heirs). 3. **CPWRS** - Passes to Surviving spouse 4. **JTWRS** - Passes to Surviving Joint Tenants - **NO CORPS** **(Time Title Interest Possess)** 5. **Tenants in Common** - Undivided Interests, Heirs **(Possession)** **Chap 11**
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**Cur\_\_\_\_** - ## Footnote **The Life Estate that a Husband has in the Estate of His Deceased Wife**
**Curtesy -** **The Life Estate that a Husband has in the Estate of His Deceased Wife** **Chap 11**
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**Ejectment** - ## Footnote **_Legal Proceeding to Regain Pos_\_\_\_\_\_ _of the Property_ for Breach of Lease ...aka - Forcible En\_\_\_\_ & Detainer Action. (Actual Eviction- Tenant Breach)**
**Ejectment** - **_Legal Proceeding_** _t_**_o Regain Possession of the Property_ for Breach of Lease ...aka - Forcible Entry & Detainer Action. This is Actual Eviction (Tenant Breach)** **Chap 11**
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**Gift of Personal Property through a "_Will_."**
**Bequest (Legacy)** - ## Footnote **Gift of Personal Property through a "_Will_."** **Chap 11**
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**Ej\_\_\_\_\_\_\_\_** **The Proper Way to Remove a Person other than a Tenant Who is in Possession of Real Property.**
**Ejectment -** **The Proper Way to Remove a Person other than a Tenant Who is in Possession of Real Property.**
88
**(CAMs) C\_\_\_\_\_ A\_\_\_ Main\_\_\_\_\_ Charges -** **Fees charged to "Commercial Tenants"** for **_Parking Lots**_, _**Walkways**_, _**Area Lighting_** etc.
**(CAMs) Common Area Maintenance Charges -** **Fees charged to "Commercial Tenants"** for **_Parking Lots**_, _**Walkways**_, _**Area Lighting_** etc. **Chap 11**
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1. **_Right to Buy or Lease_ a Property within a _Specified Period_ for a _Specified Price and Terms_**. 2. **_Holder of Option_:** **May or May Not Choose to Exercise the Right**. 3. **Only Binding on Optionor (Owner).**
**Option -** 1. **_Right to Buy or Lease_ a Property within a _Specified Period_ for a _Specified Price and Terms_**. 2. **_Holder of Option_: May or May Not Choose to Exercise the Right.** 3. **Only Binding on Optionor (Owner)**. **Chap 11 (From Chap 3)**
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**In a Lease with an Option to Purchase, the Option is Enforceable by:** 1. Optionor 2. Optionee 3. Either Party 4. Nether Party
**In a Lease with an Option to Purchase, the Option is Enforceable by:** 1. Optionor 2. **Optionee** 3. Either Party 4. Nether Party **Chap 11**
91
**The BEST Example of a _Percentage Lease_ Would be a Lease in Which the Rent was a Percentage of the Tenant's** 1. Gross Income 2. Net Income 3. Net Receipts with a Minimum Rent 4. Gross Receipts with a Minimum Rent
**The BEST Example of a _Percentage Lease_ Would be a Lease in Which the Rent was a Percentage of the Tenant's** 1. Gross Income 2. Net Income 3. Net Receipts with a Minimum Rent 4. **Gross Receipts with a Minimum Rent** **Chap 11**
92
**A Tenant is Leasing a Property which the Tenant is Interested in Buying. The Owners are Not Sure They Want to Sell at this Time. What Type of Contract Would Give the Owners the Most Freedom.** 1. Option 2. Purchase Contract 3. Right of First Refusal 4. Lease-Option
**A Tenant is Leasing a Property which the Tenant is Interested in Buying. The Owners are Not Sure They Want to Sell at this Time. What Type of Contract Would Give the Owners the Most Freedom.** 1. Option 2. Purchase Contract 3. **Right of First Refusal** 4. Lease-Option
93
**A Tenant Rents a Commercial Space and Installs a Range Above an Oven used in the Tenant's Business. The Range Hood is an:** 1. Improvement to the Property and Part of Real Estate 2. Fixture which is Permanently attached and Cannot be removed 3. Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration 4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood
**A Tenant Rents a Commercial Space and Installs a Range Above an Oven used in the Tenant's Business. The Range Hood is an:** 1. Improvement to the Property and Part of Real Estate 2. Fixture which is Permanently attached and Cannot be removed 3. **Trade Fixture and can be Removed by the Tenant prior to the Lease Expiration** 4. Trade Fixture which can be Removed if the Tenant pays the Landlord for the Cost of the Range Hood **Chap 11**
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**B Sold a Property to Y and Reserved a Life Estate for Himself. Y Recorded the Deed. B sold his Life Estate to D who Recorded the Deed. Y Demanded the Property Pass to Her in Fee Simple Title Immediately. In this case:** 1. Y's claim is invalid beacuse B controls his interest while alive 2. Y's claim is valid 3. Neither Y nor B have a claim to this property 4. B needed to obtain Y's permission to make the transfer.
**B Sold a property to Y and reserved a Life Estate for himself. Y recorded the deed. B sold his Life Estate to D who recorded the deed. Y demanded the property pass to her in Fee Simple Title immediately. In this case:** 1. **Y's claim is invalid beacuse B controls his interest while alive** 2. Y's claim is valid 3. Neither Y nor B have a claim to this property 4. B needed to obtain Y's permission to make the transfer.
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**Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:** 1. Tenants must receive at lease 90 Days Notice to Vacate 2. Leases that were in force prior to the beginning of Foreclosure must be honored 3. Tenants who are evicted must receive Cash for Keys 4. The Act does not Protect Commerical Tenants
**Under tthe Federal Protecting Tenants at Foreclosure Act all the following are correct EXCEPT:** 1. Tenants must receive at lease 90 Days Notice to Vacate 2. Leases that were in force prior to the beginning of Foreclosure must be honored 3. **Tenants who are evicted must receive Cash for Keys** 4. The Act does not Protect Commerical Tenants **Chap 11**
AZ Real Estate Agent License 2020
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