Notes Flashcards
1
Q
In Illinois, who is NOT required to hold a real estate license in order to rent out their property to a tenant?
A
If they own the property
2
Q
In IL, the statute of frauds requires that lease agreements be ___ to be enforceable if they are for more than one year.
A
in writing
3
Q
In IL, the statute of frauds requires that lease agreements be in writing to be enforceable if they are for more than ___.
A
one year
4
Q
Written leases should be signed by…
A
Both lessor and lessee
5
Q
Leaseholds are generally considered ___ property
A
personal
6
Q
An estate for years always has specific ___ and ___.
A
Beginning and ending dates
7
Q
___ is NOT required to terminate an estate for years.
A
Notice
8
Q
Notes is NOT required to terminate an estate for years because….
A
lease agreement states a specific expiration date
9
Q
In an estate for years, any extension of tenancy requires a(n) ___.
A
New contract
10
Q
An estate for years may be terminated before the expiration date if ___ or ___.
A
both parties agree
contract is breached
11
Q
If a lease is a periodic tenancy, it does not contain a(n) ___.
A
Specific expiration date
12
Q
A periodic tenancy continues indefinitely until…
A
notice of termination is given
13
Q
A ___ tenancy is created when a tenant takes possession with no definite termination date and pays monthly rent.
A
Periodic tenancy
14
Q
If the landlord accepts rent after the expiration of an estate for years, and no new lease agreement is made, a(n) ___ is created.
A
Holdover tenancy
15
Q
___ is usually considered conclusive proof of acceptance of holdover tenancy.
A
Acceptance of rent
16
Q
In IL, to terminate a tenancy from year to year, at least ___ days written notice is required at anytime within the ___ period before the last ___ days of the lease period
A
60 days
4 month period
60 days
17
Q
In IL, to terminate tenancy from month to month, ___ days written notice is required
A
30 days
18
Q
In IL, to terminate any periodic estate having a term of less than year to year but greater than week to week, ___ days written notice is required.
A
30
19
Q
In IL, to terminate tenancy from week to week, ___ days written notice is required
A
7
20
Q
In IL, to terminate farm tenancies from year to year, parties must give at least ___ written notice to terminate and may do so only at the ___.
A
4 months
end of the period
21
Q
To vacate March 1, farm tenancy notice must be given by ___.
A
November 1
22
Q
Under IL law, when Tenancy at sufferance arises, the landlord has a choice to either ___ the tenant or treat the tenant as a(n) ____
A
evict
holdover tenant
23
Q
What are the 4 requirements that make a lease valid?
A
1) Capacity to contract
2) Legal Objectives
3) Offer and Acceptance
4) Consideration
24
Q
___ is the normal consideration given for the right to occupy leased premises
A
Rent
25
___ leases are generally more complex, and may include complicated calculations of rent and maintenance costs
Commercial
26
___ are often prepared in advance of a commercial lease by the licensees representing the respective parties
Letters of intent
27
In a commercial lease, the ___ generally sets forth the basic agreements between the parties that both parties' attorneys can then use to prepare the lease from.
letters of intent
28
Commercial leases and complex residential leases should only be drafted by a(n) ___.
attorney
29
The lessor is usually bound by the implied covenant of ___, and guarantees that he will not interfere in the tenant's possession or use of the property
Quiet enjoyment
30
___ are common in leases for stores or commercial space, and are when a lessor restrict's the lessee's use of the premises through provisions in the lease.
Use restrictions
31
A lease provides that the premises are to be used "only as a real estate office and for no other purpose." This is an example of ___.
Use restrictions
32
The period for which the lease will run
Term of lease
33
If a tenant defaults on payment of rent or damages the premises, the lessor may keep all or part of the ___ to compensate for the loss
security deposit
34
What are 4 safeguards against nonpayment of rent?
1) Security deposit
2) Advance rental payment
3) Contracting for a lien on the tenant's property
4) Requiring the tenant to have a 3rd person guarantee payment
35
In IL, landlords who receive security deposits on residential leases of units in properties containing 5 or more units may not withhold any part of a security deposit as compensation for property damage unless they give the tenant a(n) ___.
Itemized statement listing the damage
36
In IL, if a landlord withholds any part of a security deposit as compensation for property damage, an itemized statement must be delivered within...
30 days of the date when the premises was vacated
37
In IL, if a landlord withholds any part of a security deposit as compensation for property damage, an itemized statement must be delivered within 30 days of the date when the premises was vacated. If the statement is not delivered, the landlord must return the entire security deposit within...
45 days of the date when the premises was vacated
38
In IL, if a landlord withholds any part of a security deposit as compensation for property damage, an itemized statement must be delivered within 30 days of the date when the premises was vacated. If the statement is not delivered, the landlord must return the entire security deposit within 45 days of the date when the premises was vacated. If a landlord is found guilty by a court for failing to comply with this requirement, they must pay the tenant...
Double the security deposit
39
IL lessees are entitled to receive ___ on their security deposits.
Annual interest
40
In IL, landlords who receive security deposits on residential leases of units in properties of 25 or more units, on deposits held for more than 6 months, are required to pay ___ from the date of the deposit.
interest
41
In IL, any landlord who is found by a court to have willfully withheld interest on a tenant's security deposit must pay the tenant...
an amount equal to the security deposit
42
A lease should specify whether a payment is a(n) ___ or ___.
Security deposit or advance rental
43
If a lease specifies that a payment is a security deposit, the tenant is usually NOT entitled to apply it to...
the final month's rent
44
If a lease specifies that a payment is an advance rental, the landlord must treat it as...
income for tax purposes
45
The Fair Housing Act requires that tenants with disabilities must be permitted to make ___ to a property.
Reasonable modifications
46
The Fair Housing Act requires that tenants with disabilities must be permitted to make reasonable modifications to a property at WHO's expense?
The tenant
47
The Fair Housing Act requires that tenants with disabilities must be permitted to make reasonable modifications to a property, however if the modifications would interfere with a future tenant's use, the landlord may require that the premises be...
restored to their original condition at the end of the lease term at the tenant's expense
48
The Americans with Disabilities Act (ADA) applies to ___ property in which ___ are provided.
Commercial
Public goods or services
49
The ADA requires that commercial properties be free of ___ or provide ___ for persons with disabilities
Architectural barriers
Reasonable accomodations
50
Failing to provide access to drinkable and hot water, heat during winter, working electricity, a smoke detector, and a working bathroom would violate the ___.
Implied Warranty of Habitability
51
Failing to remediate rodent or insect infestations violates the ___
Implied Warranty of Habitability
52
Failing to correct building code violations violates the ___
Implied Warranty of Habitability
53
When a tenant chooses to move out and terminates the lease if repairs are not made within a reasonable time
Constructive eviction
54
Often times in agricultural or industrial land, ___ are obligated for the payment of rent if improvements are damaged or destroyed
tenants
54
If a tenant repairs a problem themselves, they may ___ and the costs cannot exceed ___.
deduct the repair costs from next month's rent
cannot exceed one month's rent
55
If a residential property is damaged or destroyed, the tenant is usually permitted to ___ their rent in ___.
Reduce
Proportion to the amount of space they are able to use
56
In a commercial property, tenants who lease only part of the building, generally are not required to ___ after the leased premises are destroyed.
Pay rent
57
In some states, if property was destroyed as a result of the landlord's negligence, the tenant can...
recover damages
58
If an agricultural or industrial property is destroyed, tenants must ___ to deal with their loss of the improvement
turn to their insurance company
59
In a lease assignment, who is legally obligated for all the promises originally made in the lease?
The new tenant
60
In the case of a sublease, the original tenant is responsible for ___ and ___.
payment of rent
damages during the lease
61
In the case of a sublease, the new tenant is responsible for ___.
Payment to the original tenant
62
Most leases prohibit a lessee from ___ or ___ without the lessor's consent
Sublease or assignment
63
It is always necessary to record a lease. True or false?
False, it is usually UNNECESSARY, but it is allowed in most states
64
Some states require that long-term leases be ___
Recorded
65
What are the 3 basic types of leases?
1) Gross Lease
2) Net Lease
3) Percentage Lease
66
The type of lease that exists depends on the manner in which ___ is determined
rent
67
Most residential leases are ___ leases.
Gross
68
In a(n) ___ lease, the tenant pays a fixed rent and the landlord pays all taxes, assessments, insurance, and maintenance & utilities connected with the property.
Gross
69
The typical rent structure involved in apartment rentals is a(n) ___ lease.
Gross
70
In a(n) ___ lease, the tenant pays all or some of the operating expenses in addition to the rent.
Net
71
In a(n) ___ lease, the monthly rental constitutes income for the landlord after operating costs have been paid
Net
72
Leases for commercial or industrial buildings and the land on which they are located are usually ___ leases.
net
73
In a gross lease, who pays all property charges such as repairs, taxes, insurance, and operating expenses?
Landlord
74
In a net lease, who pays all property charges such as repairs, taxes, insurance, and operating expenses?
Tenant
75
A(n) ___ lease or ___ lease may be a percentage lease.
Gross or net
76
In a(n) ___ lease, the rent is based on a minimum fixed rental fee plus a percentage of the gross income generated by the tenant doing business on the leased property.
Percentage
77
Percentage leases are usually used for ___ and ___.
Retail businesses and restaurants
78
Percentage leases call for a minimum ___ payment plus payment of a(n) ___ exceeding a stated amount.
monthly rent payment
percentage of tenant's gross sales income
79
A percentage lease requires minimum payment of $1,300 per month, plus 5% of the business's sales exceeding $160,000. On an annual sales volume of $250,000, the annual rent would be...
$20,100
Explanation:
$1300 x 12 months = 15600
250,000-160,000 = 90,000
90,000 x 0.05 (5%) = 4500
15600+4500=20100
80
A percentage lease requires minimum payment of $1,300 per month, plus 5% of the business's sales exceeding $160,000. $160,000 is known as the...
Breakpoint
81
___ leases and ___ leases allow for increases in rental charges during the lease period
Graduated leases and index leases
82
When a landowner leases unimproved land to a tenant who agrees to erect a building on the land, the lease is usually called a(n) ___ lease
Ground
83
Ground leases are usually ___ leases
long-term net leases
84
Ground leases usually involve separate ownership of the ___ and ___.
Land and buildings
85
___ leases often run for terms of 50-99 years
Ground
86
Ground leases are generally ___ leases
net
87
In a ground lease, the ___ must pay real estate taxes, insurance, maintenance, and utilities
lessee
88
A(n) ___ is used when a tenant wants to purchase the property but is unable to do so
Lease purchase
89
In a lease purchase, the ___ is the primary consideration, while the __ is secondary.
Purchase agreement is primary
Lease is secondary
90
In a lease purchase, part of periodic rent is applied toward ___ until that price is reduced to an amount for which the tenant can obtain financing or purchase the property outright.
Purchase price
91
A(n) ___ arrangement is often used when extra capital is needed on a construction project
sale--and-leaseback
92
In a(n) ___, the original owners pull out their equity to use on other projects and reduce their taxable income when they pay rent to the new owner.
sale-and-leaseback arrangement
93
Two types of agricultural leases
Cash rent
Sharecropping
94
An agricultural landowner can be paid by their tenant with an agreed-on rental amount in cash in advance, this is called...
cash rent
95
An agricultural landowner can be paid by their tenant with a percentage of profits or losses from the sale of crop when it is sold. This is called...
sharecropping
96
A lease generally does NOT terminate if ___ or ___.
The parties die
Property is sold
97
A lease generally does not terminate if the parties die or property is sold. However there are two exceptions to this general rule. What are those 2 exceptions?
1) Lease from the owner of a life estate ends when the tenant's life ends
2) Death of either party terminates a tenancy at will
98
A lease agreement may contain language that permits a new landlord to terminate existing leases. True or false?
True
99
If a tenant defaults on payment of rent, what 2 options does the landlord have?
1) 5 day written eviction notice
2) 10 day's written notice
100
If a landlord serves their tenant a 5 day written eviction notice, demanding payment of the delinquent rent, what happens if the tenant pays the past-due rent within those 5 days?
Lease continues
101
If a landlord serves their tenant a 5 day written eviction notice, demanding payment of the delinquent rent, and the tenant fails to pay the rent, the landlord may...
Terminate the lease and sue for possession
102
If a landlord serves a 10 day written notice, even if the default is cured, the landlord still has the right to...
sue for possession
103
In IL, a landlord seeking actual eviction of a tenant must file an action called a(n) ___.
Forcible entry and detainer
104
Forcible entry and detainer suits must be filed in the...
circuit court of the county in which the property is located
105
In IL, a landlord seeking actual eviction of a tenant must file an action called a forcible entry and detainer. If the court rules in favor of the landlord, a(n) ___ will be entered, and a(n) ___ will be issued by the clerk of court.
judgement of possession
order of possession
106
After the court issues an order of possession, the tenant must...
leave peaceably & remove all their property from the premises
107
In IL, if a residential tenant personally appears in court and the landlord prevails, the court will...
delay issuing the order for a reasonable time to allow the tenant to find alternative housing
108
when a tenant refuses to vacate peaceably after a judgment for possession has been entered, the landlord must deliver the order to the ___ to forcibly evict the tenant.
the sheriff
109
After a sheriff forcibly evicts a tenant, the landlord has the right to ___ and ___.
re-enter
regain possession of the property
110
IL landlords may not forcibly remove a tenant without...
following the proper legal procedures
111
In IL, where is source of income is a protected class under fair housing laws?
Chicago
all of cook county
112
In Chicago and all of Cook County, refusing to rent to a section 8 voucher is ___.
Discrimination
113
The residential-lead-based paint hazard reduction act is also called ___.
Title X
114
Real estate licensees leasing properties built before 1978 must ensure that landlords disclose any possible ___ or related hazards
lead-based paint
115
If an offer for a lease on a property built before 1978 is received, the licensee representing the landlord must ensure that they provide which 3 things to the tenant?
1) EPA-approved pamphlet titled "protect your family from lead in your home"
2) any known information concerning presence of lead-based paint or related hazards
3) A "Lead warning statement" in or attached to the contract
116
If an offer for a lease on a MULTI-UNIT property built before 1978 is received, the licensee representing the landlord must ensure that they provide which 3 things to the tenant?
1) EPA-approved pamphlet titled "protect your family from lead in your home"
2) any known information concerning presence of lead-based paint or related hazards in both the unit AND common areas, as well as information on other units when the information was obtained via a building-wide evaluation
3) A "Lead warning statement" in or attached to the contract
117
In IL, the ___ requires that the owner of any residential building cited by the state as a lead-paint hazard give prospective tenants written notice of the danger unless the owners have a certificate of compliance.
Lead Poisoning Prevention Act
118
In IL, the Lead Poisoning Prevention Act requires that the owner of any residential building cited by the state as a lead-paint hazard give prospective tenants written notice of the danger unless the owners have ___
a certificate of compliance.
119
In IL, when a mitigation order is issued to an owner of a building containing lead hazards, the owner has ___ days to eliminate the hazard in a manner prescribed by the law, or ___ days if occupied by a child under age 6 or pregnant woman.
90 days
30 days
120
In IL, the ___ requires landlords to disclose any knowledge of radon gas on the premises.
Radon Awareness Act
121
___ is a naturally occurring odorless and colorless gas, and is the second leading cause of lung cancer in the USA.
Radon
122
In IL, radon disclosure is only required for...
Dwelling units below the 3rd story above ground level
123
A rental-finding service may not list or advertise any rental without...
Express or written authority of the unit's owner or agent
124
In IL, any person or business entity that operates a rental-finding service in IL must obtain a(n) ___ and comply with all provisions of the ___.
Real Estate License
Act
125
In IL, any person or business entity that operates a rental-finding service in IL must obtain a real estate license and comply with all provisions of the Act. However, ___ are exempt from this requirement.
General-circulation newspapers
126
In IL, the act allows landlords to ___ to tenants if the tenant refers a prospective tenant for a unit in the same building or complex.
pay a referral fee
127
In IL, the act allows landlords to pay a referral fee to tenants if the tenant refers a prospective tenant for a unit in the same building or complex if he refers nor more than ___ prospective lessees in any ___ period
3
12 month
128
In IL, the act allows landlords to pay a referral fee to tenants if the tenant refers a prospective tenant for a unit in the same building or complex if he receives compensation of no more than $___ or the equivalent of ___ - whichever is less - in any ___ period.
5,000
one-month rent
12 month
129
In IL, the act allows landlords to pay a referral fee to tenants if the tenant refers a prospective tenant for a unit in the same building or complex if he limits his activities to ___.
Referring prospective lessees to the owner
130
In IL, the act allows landlords to pay a referral fee to tenants if the tenant refers a prospective tenant for a unit in the same building or complex if he does NOT ___, ___, or ___.
Show units
Discuss lease terms
Participate in negotiation of a lease
131
A leasehold estate that runs for a specific length of time creates a(n) ___.
Estate for years
132
An estate at will runs as long as...
the landlord permits
133
A(n) ___ is possession without consent of the landlord
Estate at sufferance
134
A leasehold estate is classified as a(n) ___ interest
personal property
135
State statutes of frauds generally require that any lease that will not be completed within 1 year of the date of its making must be ___ to be enforceable in court
in writing
136
The right to abandon the premises and refuse to pay rent until the premises are repaired
Constructive eviction
137
___ and ___ laws protect rights of tenants.
Fair housing and civil rights
138
The IL ___ defines fair housing as including freedom from discrimination against an individual for being part of a protected class.
Human Rights Act
139
The IL ___ requires availability of public accommodations
Human Rights Act
140
In IL, the ___ act requires that leases for more than 1 year, or those that cannot be performed within 1 year must be in writing to be enforceable
Frauds Act
141
In IL, even a short oral lease requires that a(n) ___ disclosure be supplied
lead-paint
