Unit 12

Question 1

When the premises reach a physical condition whereby the tenant is unable to occupy them for the purposes intended, the situation is legally recognized as:

a) a dispossess eviction.
b) an actual eviction.
c) a constructive eviction.
d) a passive eviction.

Answer 1

c) a constructive eviction.

Question 2

By definition an “estate for years”:

a) must last for a year or more.
b) must last for at least two years.
c) is for a fixed term, whether a week, a month, a decade.
d) requires a written lease.

Answer 2

c) is for a fixed term, whether a week, a month, a decade.

Question 3

During the term of a lease, the landlord has which of the following?

a) Reversion interest.
b) Tenancy at sufferance.
c) Right of reentry.
d) Remainder interest.

Answer 3

a) Reversion interest.

Question 4

If it is not stipulated in the lease and the leased property is sold, the lease:

a) has to be renewed.
b) is binding on the new owner.
c) creates a tenancy from month to month.
d) materially affects the tenant.

Answer 4

b) is binding on the new owner.

Question 5

The lessor under a net lease pays the:

a) taxes.
b) special assessments.
c) maintenance.
d) mortgage principal payments.

Answer 5

d) mortgage principal payments.

In real estate, a net lease is a type of lease agreement where the tenant pays rent, plus additional operating costs like property taxes, insurance, and maintenance, in addition to the base rent. These additional costs are referred to as “the nets”. Net leases are common in commercial real estate.

The lessor is the owner - pays mortgage, lease pays the “nets”

Question 6

Under the terms of a typical lease, when the lessor dies:

a) the lease terminates.
b) the lessee has the option to terminate the lease.
c) the lease is void.
d) the lease is not affected.

Answer 6

d) the lease is not affected.

Question 7

A lease of land providing for improvements to be placed on the land by the tenant is known as a:

a) ground lease.
b) net lease.
c) gross lease.
d) sandwich lease.

Answer 7

a) ground lease.

Question 8

The term “lessor” is most likely to be used to describe:

a) a tenant.
b) an owner.
c) a vendor.
d) an optionor.

Answer 8

b) an owner.

Question 9

A leasehold interest lying between the primary lease and the sublease is known as:

a) a percentage lease.
b) a sandwich lease.
c) an inactive lease.
d) an uncapitalized lease.

Answer 9

b) a sandwich lease.

Question 10

A graduated lease can best be defined as a lease:

a) that includes an option to purchase.
b) in which there may be an increase or decrease in rent at a stated future time.
c) under which the owner or landlord pays all ownership charges such as taxes.
d) that is passed intact from one owner to the next owner under terms of a contract.

Answer 10

b) in which there may be an increase or decrease in rent at a stated future time.

Question 11

The normal shopping center lease is a:

a) net lease.
b) percentage lease.
c) gross lease.
d) sublease.

Answer 11

b) percentage lease.

A lease percentage, often referred to as a percentage lease, is a type of commercial lease agreement where the tenant pays a base rent, plus a percentage of their gross sales or revenue earned while operating a business on the premises. This type of lease is common in retail settings, particularly in shopping malls and centers.

Question 12

An example of a non-freehold estate is:

a) fee simple.
b) defeasible fee.
c) determinable fee.
d) a lease.

Answer 12

d) a lease.

Question 13

Which of the following is a non-freehold estate?

a) Tenancy by the entirety.
b) Tenancy in common.
c) Tenancy for years.
d) Tenancy in severalty.

Answer 13

c) Tenancy for years.

Question 14

Which of the following is NOT a leasehold estate?

a) Estate at will.
b) Estate at sufferance.
c) Estate for years.
d) Life estate.

Answer 14

d) Life estate.

An “estate at will,” also known as a “tenancy at will,” is a type of rental agreement where the tenant occupies the property with the landlord’s consent but without a formal lease or a specified duration.

An “estate at sufferance” (also known as a tenancy at sufferance) in real estate law refers to a situation where a tenant continues to occupy a property after their lease has expired, without the landlord’s explicit consent or permission.

Question 15

A net lease:

a) generally requires the lessor to pay operating expenses.
b) is usually used for apartments.
c) cannot be used for industrial properties.
d) generally requires the lessee to pay operating expenses.

Answer 15

d) generally requires the lessee to pay operating expenses.

Question 16

A tenant who transfers part of the remaining term of his or her lease is:

a) assigning the lease.
b) subleasing the premises.
c) a sublessee.
d) an assignee.

Answer 16

b) subleasing the premises.

Question 17

In New Jersey, if a landlord refuses to rent to a family because they have a child under 18 years old. It would be:

a) a violation of the New Jersey Law Against Discrimination.
b) a violation of the Federal Fair Housing Law.
c) a violation of license laws.
d) both A and B.

Answer 17

d) both A and B.

Question 18

Mark rents a dwelling unit to Susan, who in turn transfers a portion of her lease term to Katy. Concerning this example, all of the following statements are correct EXCEPT:

a) Katy is the sublessee.
b) Mark is the lessor in the original lease.
c) Susan is the lessee in the original lease.
d) Katy is the lessor in her lease with Susan.

Answer 18

d) Katy is the lessor in her lease with Susan.

Question 19

In New Jersey a landlord may legally evict a tenant for which of the following reasons?

a) The tenant joined a tenant organization.
b) The tenant failed to pay rent on an oral lease.
c) The tenant is too old.
d) The tenant of a two bedroom apartment gave birth to a child.

Answer 19

b) The tenant failed to pay rent on an oral lease.

Question 20

A tenancy for years can be for:

a) a certain number of days.
b) a certain amount of months.
c) a certain number of years.
d) any of the above.

Answer 20

d) any of the above.

Question 21

A landlord orally leases a store to a tenant for one year. The lease is:

a) valid.
b) invalid due to the Statute of Frauds.
c) a tenancy from year to year.
d) a periodic tenancy.

Answer 21

a) valid.

Question 22

A lease which is based on gross revenues is a:

a) gross lease.
b) net lease.
c) percentage lease.
d) annual lease.

Answer 22

c) percentage lease.

Question 23

A lease held by a tenant in an apartment building project is usually a:

a) ground lease.
b) gross lease.
c) net lease.
d) percentage lease.

Answer 23

b) gross lease.

A gross lease is a type of commercial lease where the tenant pays a fixed rent amount, and the landlord covers all operating expenses related to the property. These expenses typically include property taxes, insurance, maintenance, and utilities. In essence, the tenant’s rent is “all-inclusive,” and they don’t have to worry about additional expenses beyond their monthly payment

Question 24

Which lease provides for certain adjustments in rent?

a) Ground lease.
b) Net lease.
c) Graduated lease.
d) Long term lease.

Answer 24

c) Graduated lease.

Question 25

A lease of fixed time that automatically renews itself until the landlord or tenant takes action to terminate it is: a) an estate at will. b) a periodic tenancy. c) a tenancy at sufferance. d) a holdover tenancy.

Answer 25

b) a periodic tenancy.

Question 26

If the lease requires the landlord to provide repairs and the landlord refuses to do so, the tenant, after giving proper notice, may: a) serve the landlord with a notice to quit. b) take an ejectment action against the landlord. c) have the repairs made and deduct them from the rent. d) pay a reduced rent reflecting the value of the rented premises without the required repairs.

Answer 26

c) have the repairs made and deduct them from the rent.

Question 27

A sublease is: a) an assignment of the lease. b) a transfer of the entire leasehold. c) a transfer of less than entire leasehold. d) void after 15 years.

Answer 27

c) a transfer of less than entire leasehold.

Question 28

Under a net lease, the lessee is responsible for all of the following EXCEPT: a) taxes. b) repairs. c) water charges. d) mortgage payments.

Answer 28

d) mortgage payments.

Question 29

When a tenant is unable to occupy his leased premises for the purpose intended because of a physical condition, this is called: a) actual eviction. b) constructive eviction. c) dispossess eviction. d) passive eviction.

Answer 29

b) constructive eviction.

Question 30

Assume a mortgaged property is leased. Because of default in payment, the mortgagee forecloses on the mortgage. Which of the following statements is TRUE regarding rights under the lease? a) The lessee is automatically released from any further obligation on the lease. b) The lease continues in effect despite the foreclosure. c) The lease is void because the mortgagor has no right to give a lease on mortgaged property. d) The lease may be terminated by the mortgagee but not by the lessee.

Answer 30

d) The lease may be terminated by the mortgagee but not by the lessee.

Question 31

The term that best describes a tenant's interest in the property is: a) a life estate. b) a reversionary interest. c) a remainder interest. d) a leasehold estate.

Answer 31

d) a leasehold estate.

Question 32

Landlord tenant laws for residential properties provide for: a) one month's notice to terminate a month to month tenancy. b) limitations on the amount of the security deposit. c) a prohibition against eviction unless there is a "good cause." d) all of the above.

Answer 32

d) all of the above.

Question 33

A lease which calls for a series of predetermined rent increases designated to offset inflation is called a: a) graduated lease. b) step up lease. c) Both A and B. d) Neither A nor B.

Answer 33

c) Both A and B.

Question 34

A landlord and a tenant agreed to terminate a lease. This is known as: a) rescission. b) surrender. c) release. d) abandonment.

Answer 34

b) surrender.

Question 35

A lessee rents a building from February 1 to September 1. His tenancy is: a) month to month. b) periodic tenancy. c) fee simple estate. d) estate for years.

Answer 35

d) estate for years.

Question 36

The person who most likely would make use of the remedy called "Summary Possession" would be: a) the trustor. b) the holder of a note in default. c) the lessor. d) the grantor.

Answer 36

c) the lessor. In New Jersey, the Summary Dispossess Act allows landlords to evict tenants in cases of non-payment of rent, holdover tenancies, disorderly behavior, or property damage, after following specific procedures like written demand for possession and proper notice service. The process involves filing a petition with the court and serving the tenant with notice, and ultimately, a court order is needed to remove the tenant.

Question 37

A clause in a contract that permits an upward or downward adjustment of the obligation should certain events occur is known as a (n): a) escalation clause. b) acceleration clause. c) penalty clause. d) habendum clause.

Answer 37

a) escalation clause.

Question 38

The interest of a tenant who came rightly into possession by permission of the owner but continues to occupy the premises without permission is called: a) a sandwich lease. b) an estate at sufferance. c) an estate at will. d) an estate in remainder.

Answer 38

b) an estate at sufferance. An "estate at sufferance," also known as a "tenancy at sufferance," occurs when a tenant remains in possession of a property after their lease has expired, and the landlord has not yet taken steps to evict them or accept a new tenancy. In essence, the tenant is staying on the property without the landlord's permission, and the landlord is essentially "suffering" the situation

Question 39

All but which one of the following are necessary parts of a lease? a) Parties to the lease. b) Terms of the lease. c) Option to purchase. d) Terms of the rental payment.

Answer 39

c) Option to purchase.

Question 40

An oral contract for the lease of real estate for one year is New Jersey is: a) voidable. b) valid. c) void. d) invalid.

Answer 40

b) valid.

Question 41

In the event the landlord in a New Jersey residential month to month lease wishes to raise the rent, he must give the tenant how many consecutive days' notice? a) 72 b) 30 c) 28. d) 45

Answer 41

b) 30

Question 42

A tenant who is actually or constructively evicted by a landlord may consider his lease as being: a) renewed. b) terminated. c) assigned. d) sold.

Answer 42

b) terminated.

Question 43

Which of the following statements in reference to a residential lease is FALSE? a) The security deposit is the property of the lessor during the term of the lease. b) Unless a contrary agreement is in effect the lessee may sublet. c) A security deposit remains the property of the lessee until actual damage occurs. d) The rental of a bungalow at the shore from August 1 to August 31 is a tenancy for years.

Answer 43

a) The security deposit is the property of the lessor during the term of the lease.

Question 44

Which of the following does NOT possess a leasehold estate? a) Tenancy at sufferance. b) Tenancy at will. c) Life tenant. d) Tenant for years.

Answer 44

c) Life tenant.

Question 45

A percentage lease is: a) one which provides for the percentage that will be paid the broker as a commission. b) one where the usual rent is based upon the net receipts of the tenant. c) one which always allows the tenant to cancel his lease if his income falls below a desired amount. d) one in which the rent is determined by a percentage of sales made in the leased premises.

Answer 45

d) one in which the rent is determined by a percentage of sales made in the leased premises.

Question 46

A lease which ends without notice on the last day of the term is called; a) a tenancy for years. b) an estate at sufferance. c) an estate at will. d) an estate in remainder.

Answer 46

a) a tenancy for years.

Question 47

Which one of the following involves a landlord tenant relationship? a) Tenancy in common. b) Periodic estate. c) Joint tenancy. d) Tenancy by the entirities.

Answer 47

b) Periodic estate.

Question 48

When a lease provides that the lessor shall be responsible for expenses such as taxes, insurance, heat, utilities and maintenance, it is known as which of the following? a) Gross lease. b) Net lease. c) Indexed (escalated) lease. d) Graduated (step up) lease.

Answer 48

a) Gross lease.

Question 49

Which of the following is true when a lease is assigned? a) The assignment cannot be made without the consent of the lessor. b) The assignee will pay rent directly to lessor. c) | automatically extends the term of the lease. d) TH lease is not assignable unless it specifically states that it is.

Answer 49

b) The assignee will pay rent directly to lessor.

Question 50

If a landlord takes legal action to evict a tenant for non-payment of rent, it is called a (an): a) assignment. b) constructive eviction. c) self help eviction. d) actual eviction.

Answer 50

a) assignment. b) constructive eviction. c) self help eviction. d) actual eviction.