Key Terms

Question 1

A contract between an owner of real estate (lessor) and a tenant (lessee)

Answer 1

Lease

Question 2

Lessor

Answer 2

Owner of real estate

Question 3

Lessee

Answer 3

Tenant

Question 4

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

Answer 4

Lease

Question 5

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease

Answer 5

Reversionary Right

Question 6

The lessor’s interest is called a(n) ___.

Answer 6

Leased fee estate plus reversionary right

Question 7

A tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest

Answer 7

Leasehold estate

Question 8

A leasehold estate that continues for a definite period of time

Answer 8

Estate for years

Question 9

An interest for a certain, exact period in property leased for a specified consideration

Answer 9

Estate for years

Question 10

Also called tenancy for years

Answer 10

Estate for years

Question 11

Also called fixed-term tenancy

Answer 11

Estate for years

Question 12

An interest in leased property that continues from period to period - week to week, month to month, or year to year

Answer 12

Periodic tenancy

Question 13

A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law

Answer 13

Holdover tenancy

Question 14

An estate that gives the lessee the right to possession until the estate is terminated by either party, the term of this estate is indefinite

Answer 14

Tenancy at will

Question 15

The tenancy of a lessee who lawfully comes into possession of a landlord’s real estate but who continues to occupy the premises improperly after his lease rights have expired

Answer 15

Tenancy at Sufferance

Question 16

Also called estate at sufferance

Answer 16

Tenancy at sufferance

Question 17

A(n) ___ arises when a tenant who lawfully possessed real property continues in possession of the premises without the landlord’s consent after the rights expire (a holdover)

Answer 17

Tenancy at sufferance

Question 18

A(n) ___ can arise when a tenant for years fails to surrender possession at the lease’s expiration and continues until the landlord completes the eviction process.

Answer 18

Tenancy at sufferance

Question 19

A(n) ___ can occur by operation of law when a borrower continues in possession after foreclosure sale and beyond the redemption period’s expiration

Answer 19

Tenancy at sufferance

Question 20

Under IL law, a(n) ___ arises when a tenant remains in possession after the term of the lease expires.

Answer 20

Tenancy at sufferance

Question 21

A payment by a tenant, held by the landlord during the lease term and kept (wholly or partially) on default or destruction of the premises by the tenant

Answer 21

Security deposit

Question 22

A theory in landlord/tenant law in which the landlord renting residential property implies that the property is habitable and fit for its intended use

Answer 22

Implied Warranty of Habitability

Question 23

The transfer in writing of interest in a bond, mortgage, lease, or other instrument

Answer 23

Assignment

Question 24

Occurs when a tenant transfers all of his leasehold interests to another person, and the new tenant is legally obligated for all the promises the original tenant made in the lease.

Answer 24

Lease assignment

Question 25

Sublet

Answer 25

Sublease

Question 26

The leasing of premises by a lessee to a 3rd party for part of the lessee's remaining term

Answer 26

Sublease

Question 27

When a tenant transfers less than all the leasehold interests by leasing them to a new tenant

Answer 27

Sublease

Question 28

Sublessor

Answer 28

Original lessee

Question 29

The sublessor's interest in real estate

Answer 29

Sandwich lease

Question 30

A(n) ___ gives notice of the interest but does not disclose the terms of the lease - only the names of the parties and a description of the property.

Answer 30

Memorandum of lease

Question 31

A mortgage clause stating that the mortgagee agrees not to terminate the tenancies of the lessees in the event the mortgagee forecloses on the mortgagor-lessor's building

Answer 31

Nondisturbance Clause

Question 32

A mortgage clause stating that in the event that the mortgagee forecloses on the mortgagor-lessor's building, the mortgagee agrees not to terminate the tenancies of lessees who pay their rent

Answer 32

Nondisturbance clause

Question 33

A lease may contain an option that grants the lessee the privilege of renewing the lease, called a(n) ___.

Answer 33

Renewal option

Question 34

Some leases grant the lessee the option to purchase the leased premises, called a(n) ___.

Answer 34

Purchase option

Question 35

A clause allowing the tenant the opportunity to buy the property before the owner accepts an offer from another party

Answer 35

Right of First Refusal clause

Question 36

Option in a lease that normally allows the tenant the right to purchase the property at a predetermined price within a certain period, possibly the lease term.

Answer 36

Purchase option

Question 37

A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses.

Answer 37

Gross lease

Question 38

A lease requiring that the tenant pay not only rent, but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs

Answer 38

Net lease

Question 39

In a(n) ___ lease, the tenant pays all operating and other expenses in addition to rent.

Answer 39

Triple-net lease

Question 40

Also called a net-net-net lease

Answer 40

Triple-net lease

Question 41

A lease commonly used for commercial property, whose rental is based on the tenant's gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount

Answer 41

Percentage lease

Question 42

A(n) ___ lease provides for specified rent increases at set future dates

Answer 42

Graduated lease

Question 43

A(n) ___ lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other economic indicator

Answer 43

Index

Question 44

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease.

Answer 44

Ground lease

Question 45

The purchase of real property, the consummation of which is preceded by a lease, usually long term. Typically done for tax or financing purposes

Answer 45

Lease purchase

Question 46

In a(n) ___, the owners of property sell the property and then lease it back again for an agreed period

Answer 46

Sale-and-leaseback arrangement

Question 47

In an agricultural lease, the amount of money given as rent to the landowner at the outset of the lease, as opposed to sharecropping

Answer 47

Cash rent

Question 48

In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or profit from its sale

Answer 48

Sharecropping

Question 49

A lease agreement may contain language that permits a new landlord to terminate existing leases. This clause is most commonly called a(n) ___ and requires that tenants be given some period of notice before termination.

Answer 49

a sale clause

Question 50

The legal process that results in the tenants being physically removed from the leased premises

Answer 50

Actual eviction

Question 51

Any business that finds, attempts to find, or offers to find for any person for consideration a unit of rental real estate or a lessee for a unit of rental real estate not owned or leased by the business.

Answer 51

Rental-finding service