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Property Management And Leases

50 Questions
Property And Casualty Quizzes & Trivia

Chapter 7 Property Management and Leases

Questions and Answers
  • 1. 
    • A. 

      The assignee becomes primarily liable under the lease, and the assignor is released

    • B. 

      The assignor remains primarily liable under the lease

    • C. 

      The assignee becomes primarily liable under the lease, and the assignor retains secondary liability

    • D. 

      The assignee is liable only to the assignor and the assignor is liable to the lessor

  • 2. 
    What type of long term lease is best for a commercial tenant during an inflationary period?
    • A. 

      Gross

    • B. 

      Percentage

    • C. 

      Index

    • D. 

      Net

  • 3. 
    What colorless, odorless gas causes cancer and enters a home throug the foundation
    • A. 

      PCB's

    • B. 

      EMF's

    • C. 

      Radon

    • D. 

      Urea formaldehyde

  • 4. 
    The uniform residential landlord and Tenant Act provides that the tenant
    • A. 

      Can agree to hold the landlord harmless for actions of the landlord

    • B. 

      May apply the security deposit to the last month's rent

    • C. 

      May not unreaasonably withhold permission for the landlord to enter the premises

    • D. 

      Will make the repairs necessary to keep the premises fit for habitation

  • 5. 
    The uniform residential landlord and tenant act provides that
    • A. 

      It is a one year lease when no rental period is agreed to

    • B. 

      If no rental amount is specified then no rent can be collected

    • C. 

      The tenant must sign an exculpatory clause if requested to do so

    • D. 

      The maximum security deposit for unfurnished units is one month's rent

  • 6. 
    The tenant who remains in possession after the lease expires:
    • A. 

      Is on a periodic tenancy

    • B. 

      Has a freehold interest

    • C. 

      Is a tennant at sufferance

    • D. 

      Has a servient tenement

  • 7. 
    The lessee pays for fire insurance under what type of lease?
    • A. 

      Gross

    • B. 

      Percentage

    • C. 

      Triple net

    • D. 

      Graduated Payment

  • 8. 
    The initial action in an eviction for non payment of rent would be a(n)
    • A. 

      Unlawful detainer action

    • B. 

      Writ of possession

    • C. 

      Seizure notice

    • D. 

      Noticde to quit or pay rent

  • 9. 
    The effect of a lease assignment is that the
    • A. 

      Entire lease interest is transferred

    • B. 

      Assignee makes rent payments to the assignor

    • C. 

      Assignee is a tenant of the assignor

    • D. 

      Assignor remains primarily liable on the lease

  • 10. 
    R rented a summer cottage for the first two weeks in July.  What type of tenancy does R have?
    • A. 

      Estate for years

    • B. 

      Estate at will

    • C. 

      Periodic Tenancy

    • D. 

      Tenancy at Sufferance

  • 11. 
    Partial lease interests were transferred by a lessee.  This is a(n)
    • A. 

      Step lease

    • B. 

      Gross lease

    • C. 

      Assignment

    • D. 

      Sublease

  • 12. 
    One reason a company would sell and then lease back its real property would be
    • A. 

      The deductibility of interest

    • B. 

      To reduce monthly expenses

    • C. 

      Liquidity

    • D. 

      The tax benefits of depreciation

  • 13. 
    J leased to K who subleased to L, who then subleased to M.  The lease between K and L could be regarded as a(n)
    • A. 

      Sandwich lease

    • B. 

      Assignment

    • C. 

      Master lease

    • D. 

      Flat lease

  • 14. 
    In the absence of a notice to terminate, a lease that automatically renews itself would be a
    • A. 

      Periodic tenancy

    • B. 

      Tenancy for years

    • C. 

      Gross lease

    • D. 

      Ground lease

  • 15. 
    In accordance with the uniform residential landlord and tenant act, a lessor may properly require that the tenant
    • A. 

      Pay a security deposit equal to two months rent

    • B. 

      Agree to a limitation on the owner's liability

    • C. 

      Pay any lessor attorney fees arising from a dispute

    • D. 

      Restrict use of the premises to residential purposes

  • 16. 
    G leased a commercial building to S for ten years.  After six months S moved out without notice.  G advertised for a tenant.  G's action relate to
    • A. 

      Liquidated damages

    • B. 

      Mitigation of damages

    • C. 

      Punitive damages

    • D. 

      Severance damages

  • 17. 
    Broker L, who manages property for M, approaches tenant N for back rent a day after M dies.  N refuses to pay.  The broker should
    • A. 

      Give N statutory notice to quit or pay rent

    • B. 

      Start an unlawful detainer action

    • C. 

      Turn the matter over to a colllection attorney

    • D. 

      Take no further action

  • 18. 
    An owner wanted to structure the lease to provide income benefits like an annuity but also wanted inflation protection.  To a long term net lease she added a provision relating to:
    • A. 

      The consumer price index

    • B. 

      EMF

    • C. 

      A right of first refusal

    • D. 

      Quiet enjoyment

  • 19. 
    An owner died, which immediately ended a tenant's rights.  What kind of tenancy was it?
    • A. 

      Tenancy at will

    • B. 

      Tenancy at sufferance

    • C. 

      Periodic tenancy

    • D. 

      Estate for years

  • 20. 
    An example of constructive eviction would be a
    • A. 

      Tenant who refuses to pay rent

    • B. 

      Tenant being given a notice to quit or pay rent

    • C. 

      Landlord cutting off the tenants heat and water

    • D. 

      Tenant who remains in possession after termination of the lease

  • 21. 
    An estate for years would be created by:
    • A. 

      Express agreement

    • B. 

      Adverse possession

    • C. 

      Operation of the law

    • D. 

      Holding over

  • 22. 
    An advantage offered to an investor buying a structure subject to a ground lease rather than buying the structure and the land is
    • A. 

      Not having to pay for an unneeded structure

    • B. 

      Lower investment requirements

    • C. 

      Being able to deduct interest payments

    • D. 

      The advantage of a continued rental income

  • 23. 
    After receiving a three year lease,  a residential tenant moved in and paid the first month's rent, but failed to sign and return a copy to the lessor.  As to the tenant's obligations the
    • A. 

      Tenant can cease the tenancy after a 30 day notice

    • B. 

      Lease is inivalid because it is an oral lease for more than one year

    • C. 

      Tenant can leave but must forfeit any security deposit

    • D. 

      Tenant remains bound to the provisions of the lease

  • 24. 
    A valid lease must include
    • A. 

      An exculpatory provision

    • B. 

      The specified use of the premises

    • C. 

      A definite termination date

    • D. 

      A description of the premises

  • 25. 
    A tenant suffered from lead poisoning relating to the occupancy of an older apartment.  The cause was likely
    • A. 

      Insulation

    • B. 

      Radon leakage

    • C. 

      Flaking paint

    • D. 

      Related to EMF

  • 26. 
    A tenant on a long term lease purchased the building from his landlord and resold it to investors at a profit, making no mention of lease rights.  The lease was terminated by
    • A. 

      Commercial frustration

    • B. 

      Merger

    • C. 

      Surrender

    • D. 

      Recordation

  • 27. 
    A tenant moved out with 18 months remaining on the lease.  To mitigate damages, the landlord
    • A. 

      Boarded up the premises to prevent vandalism

    • B. 

      Advertised the vacancy

    • C. 

      Sued teh tenant for the amount owing

    • D. 

      Sued the tenant for the amount owing plus balance on the lease

  • 28. 
    A tenant has the right to meet the terms offered by any prospective new tenant when the current lease expires.  What is this right called?
    • A. 

      Holdover provision

    • B. 

      Option

    • C. 

      Right of first refusal

    • D. 

      Extension agreement

  • 29. 
    A tenancy based on permissive occupancy without any tenancy ageement would be
    • A. 

      Month to month lease

    • B. 

      Freehold interest

    • C. 

      Tenancy at sufferance

    • D. 

      Tenancy at will

  • 30. 
    A sublessee is a(n)
    • A. 

      Assignee

    • B. 

      Owner

    • C. 

      Tenant

    • D. 

      Lessor on a sublease

  • 31. 
    A residential tenant on a month to month tenancy generally has a
    • A. 

      Gross lease

    • B. 

      Net lease

    • C. 

      Percentage lease

    • D. 

      Graduated lease

  • 32. 
    A residential lease has an implied covenant of
    • A. 

      Acknowledgement

    • B. 

      Exculpation

    • C. 

      Merger

    • D. 

      Habitability

  • 33. 
    A purchaser concerned with EMF's woudl be interested in knowing about
    • A. 

      Underground fuel storage tanks

    • B. 

      Use of urea formaledehyde foam insulation

    • C. 

      Electrical transmission lines

    • D. 

      The presence of radon gas

  • 34. 
    A property manager is in trouble because of compensation received.  This compensation was a
    • A. 

      Percentage of the gross

    • B. 

      Fee for leasing

    • C. 

      Fee for supervising repairs

    • D. 

      Kickback from a supplier

  • 35. 
    A property management contract should include
    • A. 

      A list of properties currently managed by the manager

    • B. 

      The obligations and responsibilities of the manager

    • C. 

      The managers professional qualifications

    • D. 

      An ethnic breakdown of current tenants

  • 36. 
    A mineral formerly used in home construction that can cause lung cancer is
    • A. 

      Asbestos

    • B. 

      Lead

    • C. 

      Radon

    • D. 

      Urea formaldehyde foam

  • 37. 
    A lessor wants a tennant to protect the lessor from claims of others based on problems concerning the premises.  What type of insurance would the lessor want the lessee to carry?
    • A. 

      Public liability

    • B. 

      Errors and omissions

    • C. 

      Homeowners policy

    • D. 

      Fire and extended coverage

  • 38. 
    A lessor believes the desirability and sales volume of a large retail store will increase dramatically in the next few years.  In negotiating a long term lease for the premises, the lessor would ask for what type of lease?
    • A. 

      Flat

    • B. 

      Triple net

    • C. 

      Percentage

    • D. 

      Gross

  • 39. 
    A lessee would have the greatest protection  with a(n)
    • A. 

      Estate for years

    • B. 

      Estate at will

    • C. 

      Tenancy at sufferance

    • D. 

      Periodic tenancy

  • 40. 
    A lessee is relieved of all obligations under the lease when the
    • A. 

      Lessee is evicted for rent arrearage

    • B. 

      Property is sold

    • C. 

      Lessee is constructively evicted

    • D. 

      Lessee can no longer afford to pay the rent

  • 41. 
    A lease that ends on a specified date without the requirement of notice is a(n)
    • A. 

      Tenancy at will

    • B. 

      Estate for years

    • C. 

      Tenancy at sufferance

    • D. 

      Periodic tenancy

  • 42. 
    A lease provids that every June 1 the monthly rent will increase by $50.  what itype of lease is this?
    • A. 

      Flat lease

    • B. 

      Net lease

    • C. 

      Graduated lease

    • D. 

      Index lease

  • 43. 
    A lease prohibited assignment or subletting without the owner's prior approval.  The lessee assigned without asking the lessor.  The assignment is
    • A. 

      Void

    • B. 

      Voidable

    • C. 

      Unenforceable

    • D. 

      Illegal

  • 44. 
    A lease in which the lessee's total monthly rent costs remain unchanged for the term of the lease is what type of lease?
    • A. 

      Gross

    • B. 

      Net

    • C. 

      Percentage

    • D. 

      Graduated

  • 45. 
    A landlord included a clause in the lease that said the tenant would not hold the landlord liable for personal injury or property damage for any reason.  This is considered a(n)
    • A. 

      Recapture clause

    • B. 

      Quiet enjoyment clause

    • C. 

      Exculpatory clause

    • D. 

      Holdover clause

  • 46. 
    A landlord failed to deal with a serious rodent problem, claiming she could not afford an exterminator.  A tenant could break a lease based on
    • A. 

      Commercial frustration

    • B. 

      Constructive eviction

    • C. 

      Merger

    • D. 

      Destruction of premises

  • 47. 
    A former owner could be liable for the physical condition of the premises even after ten years
    • A. 

      If a warranty deed was used to convey title

    • B. 

      If the owner failed to specify "as is"

    • C. 

      Under the federal Comprehensive Environmental Response Compensation and Liability Acto f 1980

    • D. 

      Under the Uniform Residential Landlord and Tenant Act

  • 48. 
    A commercial lease for a definite period of time is terminated by
    • A. 

      Death of the lessor

    • B. 

      Death of the lessee

    • C. 

      A sale by the lessor

    • D. 

      Surrender

  • 49. 
    A clause in a three year lease provides that should the tenant retain possession after expiration of the lease, it will be on a month to month basis with a significant increase in rent.  This clause is intended to discourage a
    • A. 

      Lease renewal

    • B. 

      Lease extension

    • C. 

      Tenancy at sufferance

    • D. 

      Surrender of the premises

  • 50. 
    A child was injured when he fell through the floor in an abandoned house.  If the owner was held liable for the injury, the house was probably considered a(n)
    • A. 

      Encroachment

    • B. 

      Attractive nuisance

    • C. 

      Hazardous substance

    • D. 

      Implied easement