Leasehhold estates (Landlord/tenant)

Question 1

Usufruct

Answer 1

When a lease is less than 5 years; tenant only has possession and use and ownership remains with the landlord

Question 2

Estate for years

Answer 2

When a lease is more than 5 years. Tenant is the owner

Question 3

How is a usufruct created?

Answer 3

1. Created by lease agreement between landlord tenant
2. Parties can create a usufruct with a longer term by mutual agreement
3. Statute of Frauds requires a writing if term exceeds one year

Question 4

Termination of a Usufruct

Answer 4

• Ends automatically at the term
• Notice of termination is not required
• A tenant may terminate before the end of the term by surrender
• Either party may terminate if the other has breached a material convenant

Question 5

To terminate a tenancy at will, how many days’ notice is a landlord required to give?

Answer 5

60 days

Question 6

To terminate a tenancy at will, how many days’ notice is a tenant required to give?

Answer 6

30 days

Question 7

A landlord’s consent to a tenant remaining on the property converts a tenancy at sufferance to a ___________

Answer 7

tenancy at will

Question 8

Three duties of tenant:

Answer 8

1. Pay rent
2. Do not commit waste
3. Do not unjustifiably abandon the premises

Question 9

When is a tenant not required to pay rent?

Answer 9

When the premises is destroyed or the landlord is in material breach of the lease agreement

Question 10

In the event of unjust abandonment, a landlord may choose to:

Answer 10

1. Terminate the lease
2. Re-lease the premises; or
3. Let the property remain vacant while collecting the agreed rent

Question 11

T or F: A tenant may not cut down growing trees on the land absent the landlord’s consent

Answer 11

True

Question 12

T or F: A tenant may not remove permanent fixtures on the land absent the landlord’s consent

Answer 12

True

Question 13

T or F: A tenant may not use dead timber for firewood absent the landlord’s consent

Answer 13

False

Question 14

T or F: A tenant may not let cattle graze on the land absent the landlord’s consent

Answer 14

False

Question 15

When the landlord requires a deposit, what two options do they have?

Answer 15

1. Place in an escrow account
2. Keep a surety bond with the superior court clerk in the county where the property is located

Question 16

How long does a landlord have to give the tenant a list of damages when the lease term is over?

Answer 16

Within 3 business days after the tenant vacates. Then the tenant has 5 business days to inspect the premises and dispute any of the claimed damages

Question 17

T or F: The landlord can keep a deposit for ordinary wear and tear

Answer 17

False

Question 18

When may a landlord keep a deposit:

Answer 18

1. Abandonment
2. Failure to pay rent
3. Actual damages from the tenant’s breach of the lease agreement

Question 19

What is a tenant entitled if a landlord retains the deposit as a result of a bona fide error?

Answer 19

The landlord is liable to the tenant only for the amount of the deposit

Question 20

What is a tenant entitled if a landlord intentionally retains the deposit wrongfully?

Answer 20

The landlord is liable for triple the amount of the deposit, plus attorney’s fees

Question 21

A tenant can make repairs and seek either:

Answer 21

1. Reimbursement; or
2. Deduct from the future rent

Question 22

Elements of Adverse Possession

Answer 22

1. Hostile
2. Open & Notorious
3. Continuous
4. Exclusive

Question 23

Statutory period for adverse possession in Georgia

Answer 23

20 years

Question 24

Continuous: The period is ____ years when possession is under written evidence of title (i.e. color of title)

Answer 24

Seven

Question 25

Does payment of taxes, itself, establish adverse possession?

Answer 25

No

Question 26

What type of hostility does GA require?

Answer 26

Good-faith belief that the adverse possessor actually owned the property

Question 27

Implied warranty of fitness or suitability

Answer 27

The seller makes an implied warranty of workman-like construction. Applies in the construction of a new home As a caveat emptor (buyer beware) state, Georgia generally does not imply a warranty as to the condition of a new home

Question 28

What defects can a buyer recover in the construction of a home they've purchased?

Answer 28

Latent defects (i.e. those defects that would have had no reason to know about, but the seller did know or reasonably could have known)

Question 29

Liquidated damages

Answer 29

If a buyer breaches the contract, the seller can collect the liquidated damages unless the seller suffered no loss from the breach

Question 30

The seller of a home cannot connect liquidated damages unless:

Answer 30

1. The injury caused by the breach is difficult or impossible to estimate 2. The parties intend the damages to be compensatory and not punitive 3. The amount of liquidated damages is reasonable

Question 31

Lien Theory Rule on Mortgages

Answer 31

Generally, in a lien theory state, the borrower is the owner, and the bank has a lien on the property

Question 32

Exception to the lien theory state rule

Answer 32

If the homeowner grants a security deed instead of a mortgage, the bank owns legal title - The bank must re-convey the property when the debt is satisfied - Generally, title reverts back automatically seven years after the debt matures

Question 33

T or F: Georgia has a statutory right of redemption after a foreclosure sale

Answer 33

False

Question 34

When can the mortgagee-bank bring a deficiency action?

Answer 34

When the sale is reported to the superior court of the county in which the land is located within 30 days of the sale

Question 35

Execution of deed (witnesses) general rule

Answer 35

the grantor's signature on the deed need not be witnesses or notarized

Question 36

Unless a deed is going to be recorded electronically, you must have either:

Answer 36

1. one witness and one legal official (notary public, judge, clerk) OR 2. Acknowledgment by the grantor in the presence of a legal official

Question 37

What is required for personal property to be considered a fixture?

Answer 37

The intent that the tangible personal property remain permanently with the property

Question 38

Ademption in Georgia

Answer 38

If the decedent exchanged the devised property for property that is similar in it character and use, there is a presumption that the decedent intended for the beneficiary to take the new property

Question 39

Does a beneficiary who takes property subject to a mortgage, liable to pay the remaining balance?

Answer 39

No, unless the will provides otherwise