Real Estate Lease

Chapter 7

A lease is both an instrument of___ and a ___ between principal parties to uphold certain covenants and obligations.

conveyance, contract

A lease that is full-service lease requires the landlord to pay the property’s operating expenses, including utilities.

gross lease

A lease that requires a tenant to pay for utilities, internal repairs, and some of the taxes, insurance, and operating expenses in addition to rent

net lease

A lease that allows the landlord to share in the income generated from the use of the property.

percentage lease

A lease that concerns the land portion of a real property

ground lease

A model law enacted as a blueprint for state laws to regulate the leasing and management practices of landlords with residential properties. It aims to balance landlord and tenant rights

Uniform Residential Landlord & Tenant Act

A lease that is for a cooperative unit owners, indefinite term, assigned to a new unit owner on sale

proprietary lease

If there is an assignment of the lease, then:

the entire leasehold interest by a tenant has been transferred to a third party.

A _________ is when a lease automatically terminates at the end of the lease term.

term expiration

Which of the following lease types conveys rights other than the rights to exclusive use and occupancy of the entire property?

rights lease

What can a landlord file to a court if the tenant is in default?

suit for possession or suit for eviction

Rent levels under a gross lease tend to be higher than under a net lease. T/F

T

A lease that refers to the rights and responsibilities outlined within a lease agreement between a landlord and tenant.

rights lease

A landlord and tenant complete a one-year lease. The following week, the landlord dies. Which of the following is true?

The tenant must continue to abide by all lease terms.

A _________ is when a lease automatically terminates at the end of the lease term.

term expiration

The sale of a property does not terminate a lease? T/F

T

What must happen for a tenant to be able to sublease?

The tenant requires written approval from the landlord.

A primary theme of the Uniform Residential Landlord and Tenant Act is that both landlord and tenant

bargain with each other in good faith.

What can a landlord file to a court if the tenant is in default?

suit for possession.

A lease can terminate for all of the following reasons, except;

death

Which of the following statements is most accurate.

Rent levels under a gross lease are higher then under a net lease.

What distinguishes leasehold estates is that they are

Recording a leasehold conveyance is not needed for validity, but it is highly recommended. T/F

T

In accordance with the Statute of Frauds

a five-year lease must be in writing to be enforceable.

URLTA denotes that a rent amount should be:

fair market value or court's opinion

In a sublease, who is the subtenant liable to?

the sublessor

What distinguishes leasehold estates is that they are:

temporary in nature.