Chapter 6 Lease and the Landlord-Tenant Relationship Flashcards Preview

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Flashcards in Chapter 6 Lease and the Landlord-Tenant Relationship Deck (28)
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1

What are the new owner's obligations to valid leases when a property is sold?

The new owner assumes the role of landlord with respect to existing leases.

2

Under common law, who has the responsibility and liability for making leasehold repairs needed due to causes other than normal wear and tear?

The tenant

3

What specific lease clause gives the tenant exclusive possession and control of the leased premises?

a. covenant of possession
b. warranty of habitability
c. covenant of quiet enjoyment
d. common law

a. covenant of possession

4

Which of the following is TRUE about the covenant of quiet enjoyment?

a. it is an assurance that surrounding noise levels will be below a determined decibel level
b. it is a promise from the landlord to make repairs when sound is disturbing surrounding tenants
c. it is a guarantee that the tenants will have peaceful possession of the property
d. it is a prevention of foreclosure on a property that is currently being leased.

c. it is a guarantee that the tenants will have peaceful possession of the property

5

Which of the following is a defense for nonpayment of rent or as a justification for termination of a lease?

a. abatement of rent
b. tenant's cure rights
c. constructive eviction
d. reformation lawsuit

c. constructive eviction

6

Explain the covenant of possession.

gives the tenant exclusive possession and control of the leased premises.

Landlord cannot enter the property unless the landlord reserves specific entry rights in the lease.

7

What is rent?

payment to the landlord by the tenant to occupy the leased premises

8

What is CPI used to measure?

a. property maintenance costs
b. average real estate prices
c. housing market fluctuation
d. cost of living increases

d. cost of living increases

9

What is the purpose of a work letter?

A letter detailing tenant improvements-describes work to be done, who will pay, when it will begin and end, etc.

10

When a tenant at Bright Manor defaulted on rent, the landlord considered entering the tenant's property to seize it's goods and hold them for sale to offset the unpaid rent. he decided not to, however, when his lawyer told him that the remedy ________ had been abolished in his state.

a. distress for rent
b. breach of lease
c. survival
d. evocation

a. distress for rent

11

In a net lease, the tenant pays

a. a fixed rent alone
b. a graduated rent
c. base rent plus expenses
d. a percentage rent alone

c. base rent plus expenses

12

When does the legal constructive eviction usually occur?

After the tenant has vacated the leased premises

13

If a landlord sells property that is subject to valid leases, the ______ takes the property subject to those leases and the rights of the tenants under the leases.

a. purchaser
b. bank
c. mortgagee
d. agent

a. purchaser

14

What is the survival clause?

a lease term that converts the tenant's rent obligations into an obligation to pay damages due to the tenant's breach, thus allowing the landlord to continue to collect rent as damages after a breach.

15

What is distraint and distress for rent?

A common law right of the landlord to enter the tenant's property, seize the tenant's goods and hold them for public sale to offset unpaid rent. Most states have abolished the right

16

Which covenant in the landlord-tenant relationship assures the tenant freedom from interference from acts and claims of third parties?

The covenant of quiet enjoyment

17

Usually, what effect does a sublease have on the original tenant's obligation to the landlord?

It does not change the original tenant's obligation to the landlord

18

Which of the following is NOT typically addressed by a lease?

a. rent
b. appearance of property grounds
c. term of possession
d. use of premises

b. appearance of property grounds

19

What approaches are typically used to increase rent in a long term lease?

Adjusting the rent to Consumer Price Index (CPI).

20

Joe's landlord refused to provide adequate heat or hot water during the cold water during the cold winter. For health reasons, Joe abandoned the apartment and was not obligated to pay the rent. this was an example of ______ as it pertained to his lease.

a. warranty of fitness
b. constructive eviction
c. warranty of habitability
d. breach of lease

b. constructive eviction

21

The terms in Woody's Furniture Inc.'s lease restricts the kinds of operations it may undertake within its leased premises. These terms were written into a(n):

a. waiver
b. subrogation
c. privity of contract
d. use clause

d. use clause

22

Which is NOT a common method of pass through for a tenant?

a. tenant assumes between 50-70% of the increases in operating expenses over the first year of a lease
b. tenant assumes the cost of operating expenses in excess of a stated dollar amount
c. tenant assumes any increase in operating cost over a based year
d. tenant is not required to assume any increases in operating expenses


a. tenant assumes between 50-70% of the increases in operating expenses over the first year of a lease

23

Which of the following is NOT typically found in a work letter?

a. who bears the cost of the work
b. who conducts the work
c. when work will begin
d. technical details of the work

d. technical details of the work

24

Under common law, when is the tenant NOT responsible for leasehold repairs?

a. when damage is the tenant's fault
b. when the repairs have been prescheduled
c. when the damage is caused by normal wear and tear
d. when repairs are necessary to continue to use the property

c. when the damage is caused by normal wear and tear

25

Performance Systems Incorporated, which also operates its business using the acronym PSI, lease a warehouse from Elixir Properties LLC. To ensure legal legitimacy, what name must appear for PSI on the lease?

a. PSI Inc., as this is their DBA name
b. PSI, as this is their DBA name
c. Performance Systems Corporation
d. Performance System Incorporated, the proper name of the corporation

d. Performance System Incorporated, the proper name of the corporation

26

What is an expense stop?

The dollar amount at which a tenant becomes responsible for operating expenses

27

What is a constructive eviction?

A landlord's deprivation of the tenant's use and enjoyment of the leased premises, causing the tenant to abandon or surrender the premises. The tenant's obligation to pay rent ceases after moving out.

28

What is a lease?

an agreement between a tenant and a landlord governing the terms of their relationship