Unit 11 Landlord and Tenant

Question 1

A landlord may enter leased premises to make repairs if the landlord
A knocks first to give notice of intent to enter.
B is given this right in the lease.
C gives 48 hours’ notice of intent to enter.
D gives written notice of intent to enter 24 hours in advance.

Answer 1

B is given this right in the lease.

Question 2

For the tenant to terminate a tenancy from month-to-month, according to standard protocol, the tenant
A must give notice to the landlord prior to termination.
B need not give notice to the landlord about vacating the leased premises.
C must give 45 days’ notice to the landlord prior to termination.
D must ask for the security deposit before vacating the leased premises.

Answer 2

A must give notice to the landlord prior to termination.

Question 3

A lease calls for a base rent of $1,200 per month plus 4% of the annual gross business exceeding $150,000. This is what type of lease?
A Gross
B Graduated
C Percentage
D Net

Answer 3

C Percentage

Question 4

An agreement in which the tenant pays a fixed rent and the landlord pays all taxes, insurance, and maintenance on the property is a
A net lease.
B gross lease.
C index lease.
D ground lease.

Answer 4

B gross lease.

Question 5

A percentage lease provides for a
A long-term rental of a certain percentage of the space in a building.
B definite monthly rent not to exceed a stated percentage of the building’s value.
C definite monthly rent plus a percentage of the tenant’s gross receipts in excess of a certain amount.
D monthly graduated rent amount not to exceed a stated percentage of the original rent.

Answer 5

C definite monthly rent plus a percentage of the tenant’s gross receipts in excess of a certain amount.

Question 6

A tenant who transfers the remaining term of a lease to a third party is
A a sublessee in a sandwich lease.
B assigning the lease.
C relieved of any further obligation under the lease.
D giving the third party a gross lease.

Answer 6

B assigning the lease.

Question 7

If a tenant complains to the authorities about a housing code violation in the apartment building that affects her health, the landlord may
I reduce the rent as the remedy.
II evict the tenant for filing a complaint.
A I only
B II only
C Both I and II
D Neither I nor II

Answer 7

D Neither I nor II

Question 8

A property owner sells his North Carolina mountain chalet that he has been renting to vacationing ski fanatics for years. At the time of the sale, there are already 20 different week-long reservations in place for the upcoming ski season that starts in a couple of months. The purchaser of the chalet
A must honor any of the reservations that occur within the next six months.
B does not have to honor any of the reservations since they are with the old owner.
C must honor all reservations in place at the time of closing regardless of when they occur.
D does not have to honor any reservations as long as a 30-day advance written notice is given to the tenant.

Answer 8

A must honor any of the reservations that occur within the next six months.

Question 9

If a landlord fails to repair the broken heating system in a timely manner, the tenant may
A stay in the premises and withhold rent until the repair is complete.
B personally pay for the repair and deduct the expense from the monthly rent.
C withhold rent and deposit it in an escrow account at a bank until the repair is complete.
D leave the premises and stop paying rent.

Answer 9

D leave the premises and stop paying rent.

Question 10

The Residential Rental Agreement Act requires the landlord to keep the
I apartment building in habitable condition.
II common areas in the rental property in safe condition.
A I only
B II only
C Both I and II
D Neither I nor II

Answer 10

C Both I and II

Question 11

A ground lease is usually
A short term.
B for 5 to 10 years.
C for 99 years.
D automatically renewable.

Answer 11

C for 99 years.

Question 12

If a lessor sells the leased premises, the new owner
A can negotiate new rental payments with the tenants if the leases were recorded.
B takes the property subject to the terms of the tenants’ leases.
C must wait to take title until all the leases expire.
D can change any of the lease terms after a two-month waiting period.

Answer 12

B takes the property subject to the terms of the tenants’ leases.

Question 13

With a month-to-month tenancy, the landlord can require a maximum security deposit equal to
A seven days’ rent.
B two weeks’ rent.
C one and one-half months’ rent.
D two months’ rent.

Answer 13

C one and one-half months’ rent.

Question 14

If a residential tenant breaches the lease by not paying rent, the landlord may
A change the locks and prevent the tenant from entering the premises.
B turn off the tenant’s utilities until rent is paid.
C file a summary ejectment with the courts.
D seize and sell the tenant’s possessions to raise the rent money.

Answer 14

C file a summary ejectment with the courts.

Question 15

Constructive eviction occurs when the
A landlord forcibly removes the tenant from the premises after obtaining a court order.
B tenant moves out because the landlord fails to keep the premises in habitable condition.
C tenant fails to pay rent on time and the landlord changes the locks.
D landlord retaliates against the tenant for complaining to a state authority.

Answer 15

B tenant moves out because the landlord fails to keep the premises in habitable condition.

Question 16

An estate for years
A renews itself automatically unless notice to terminate is given.
B terminates automatically at the expiration of the lease term.
C requires 45 days’ notice to terminate.
D cannot be renewed.

Answer 16

B terminates automatically at the expiration of the lease term.

Question 17

An estate at sufferance usually terminates
A only with prior notice.
B on its second automatic renewal.
C through a summary ejectment.
D automatically on its expiration date.

Answer 17

C through a summary ejectment.

Question 18

A landlord has sold his building to the state so that a freeway can be built. The tenant’s lease has expired, but the landlord is letting him remain until the time the building will be torn down. The tenant is part of a
A holdover tenancy.
B first right of refusal.
C tenancy at sufferance.
D tenancy at will.

Answer 18

D tenancy at will.

Question 19

If the landlord of an apartment building breaches her lease with one of the tenants and the tenant’s unit becomes uninhabitable, which of the following would probably result?
A Suit for possession
B Constructive eviction
C Tenancy at sufferance
D Covenant of quiet enjoyment

Answer 19

B Constructive eviction

Question 20

Which of the following statements about the Tenant Security Deposit Act is NOT true?
A A property manager may be bonded for security deposits if the bonding company is located in North Carolina.
B The landlord has up to 60 days after the end of the lease to account for the use of the deposit money and/or return the funds to the tenant.
C The deposit money may be used to repair holes in the walls and stains in the carpet.
D A landlord can charge a deposit that is the equivalent of two months’ rent for a one-year lease.

Answer 20

A A property manager may be bonded for security deposits if the bonding company is located in North Carolina.

Question 21

A tenant has a one-year leasehold interest in a property. The interest automatically renews itself at the end of each year. The tenant’s interest is referred to as a tenancy
A for years.
B from period to period.
C at will.
D at sufferance.

Answer 21

B from period to period.

Question 22

A tenant has assigned her apartment lease to a friend, and the landlord has agreed to the assignment. If the friend fails to pay the rent, who is liable?
A The friend is primarily liable; the original tenant is secondarily liable.
B The original tenant is primarily liable; the friend is secondarily liable.
C The original tenant is solely liable.
D The friend is solely liable.

Answer 22

A The friend is primarily liable; the original tenant is secondarily liable.

Question 23

Which event would automatically terminate a residential lease?
A Destruction of the property
B Sale of the property
C Failure of the tenant to pay rent
D Death of the lessor

Answer 23

A Destruction of the property

Question 24

Which transaction would best be described as involving a ground lease?
A A landowner agrees to let a tenant search and drill for oil on a property for 99 years.
B With the landowner’s permission, a tenant builds a shopping center on a rented property at the tenant’s own expense.
C A landlord charges a commercial tenant separate rent amounts for the land and buildings under a lease.
D A tenant pays a base amount for the property, plus a percentage of business generated income.

Answer 24

B With the landowner’s permission, a tenant builds a shopping center on a rented property at the tenant’s own expense.

Question 25

The North Carolina Association of REALTORS® Residential Rental Contract includes all of the following provisions EXCEPT
A late payment fees.
B handling of tenant security deposits.
C tenant’s right to have pets.
D tenant’s breach of contract.

Answer 25

C tenant’s right to have pets.

Question 26

Landlords and their agents must comply with laws that
A prohibit housing voucher recipients from being evicted at any time.
B require the acceptance of housing vouchers.
C require prospective tenants with disabilities rent first-floor only dwellings.
D prohibit sexual harassment of tenants.

Answer 26

D prohibit sexual harassment of tenants.

Question 27

A purchaser of a residential property is advised by her agent that there are some pending but unfulfilled vacation leases coming up after closing. The new owner must honor those leases
A that will end within 180 days after the transfer.
B that will begin prior to the start of hurricane season.
C made by a licensed real estate broker.
D under all circumstances.

Answer 27

A that will end within 180 days after the transfer.