Property Management And Leases

50 Questions | Total Attempts: 177

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Property And Casualty Quizzes & Trivia

Chapter 7 Property Management and Leases


Questions and Answers
  • 1. 
    An estate for years would be created by:
    • A. 

      Express agreement

    • B. 

      Adverse possession

    • C. 

      Operation of the law

    • D. 

      Holding over

  • 2. 
    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

  • 3. 
    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

  • 4. 
    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

  • 5. 
    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

  • 6. 
    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

  • 7. 
    A sublessee is a(n)
    • A. 

      Assignee

    • B. 

      Owner

    • C. 

      Tenant

    • D. 

      Lessor on a sublease

  • 8. 
    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

  • 9. 
    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

  • 10. 
    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

  • 11. 
    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

  • 12. 
    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

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

      Step lease

    • B. 

      Gross lease

    • C. 

      Assignment

    • D. 

      Sublease

  • 15. 
    The lessee pays for fire insurance under what type of lease?
    • A. 

      Gross

    • B. 

      Percentage

    • C. 

      Triple net

    • D. 

      Graduated Payment

  • 16. 
    What type of long term lease is best for a commercial tenant during an inflationary period?
    • A. 

      Gross

    • B. 

      Percentage

    • C. 

      Index

    • D. 

      Net

  • 17. 
    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

  • 18. 
    A mineral formerly used in home construction that can cause lung cancer is
    • A. 

      Asbestos

    • B. 

      Lead

    • C. 

      Radon

    • D. 

      Urea formaldehyde foam

  • 19. 
    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

  • 20. 
    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

  • 21. 
    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

  • 22. 
    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

  • 23. 
    When a lease is assigned, who is responsible for rent obligations?
    • 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

  • 24. 
    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

  • 25. 
    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