Real Estate Fundamentals - Chapter 7: Rental Of Real Property

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  • 1/15 Questions

    A lease is a contract by which an owner/landlord of a real property gives to a renter/tenant the right of possession and use of the owner's property according to the terms of the lease in return for monetary compensation called rent.

    • True
    • False
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About This Quiz

This quiz on 'Real Estate Fundamentals - Chapter 7: Rental of Real Property' assesses understanding of different types of tenancies, the legalities of leases, and tenant rights. It's essential for learners focusing on property management and real estate law.

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  • 2. 

    A sale and leaseback is a combination of real estate transactions through which an owner sells his property and simultaneously enters into a lease to be able to remain in possession of the property as a tenant.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A sale and leaseback transaction involves selling a property and then immediately leasing it back from the new owner. This allows the original owner to continue occupying the property as a tenant. This statement is true as it accurately describes the nature of a sale and leaseback transaction.

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  • 3. 

    A percentage lease is a lease in which the rent is based on a percentage of the business volume or sales produced by the store.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A percentage lease is a type of lease agreement where the rent payment is determined based on a percentage of the business volume or sales generated by the store. This means that the more successful the store is in terms of sales, the higher the rent payment will be. It allows the landlord to share in the success of the business and provides an incentive for the tenant to increase sales. Therefore, the statement that a percentage lease is a lease in which the rent is based on a percentage of the business volume or sales produced by the store is true.

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  • 4. 

    An estate at will is a type of interest in which the tenant occupies a property strictly at the will of the landlord and may be ended at any time by either the landlord or the tenant.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    An estate at will is a type of tenancy agreement where the tenant has the right to occupy a property for an indefinite period, but the tenancy can be terminated by either the landlord or the tenant at any time. This means that the tenant does not have any guarantee of how long they can stay in the property and can be asked to leave by the landlord without any specific reason. Therefore, the statement "An estate at will is a type of interest in which the tenant occupies a property strictly at the will of the landlord and may be ended at any time by either the landlord or the tenant" is true.

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  • 5. 

    The official contract name of the landlord is lessee, while the official contract name of the tenant is lessor.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Landlord = Lessor
    Tentant = Lessee

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  • 6. 

    According to rules and regulations of the PA Real Estate Commission, ALL contracts (including leases) used by licensees MUST be in writing.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    According to the rules and regulations of the PA Real Estate Commission, it is mandatory for all contracts, including leases, used by licensees to be in writing. This implies that verbal agreements or contracts would not be considered valid or enforceable in the real estate industry. Therefore, the correct answer is true.

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  • 7. 

    The interest that a tenant has in real property through a lease for a specific duration is known as an estate for tenancy or a tenancy for years.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because a tenancy for years refers to a lease agreement for a specific duration, such as one year or six months. In this type of tenancy, the tenant has a legal interest in the property for the agreed-upon period. This is different from other types of tenancies, such as a month-to-month tenancy or a tenancy at will, which do not have a specified duration.

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  • 8. 

    When a tenant remains in a leased proerty without the consent of the landlord it is known as a periodic tenancy.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    This is known as a Tenancy at Sufferance or a Holdover Tenant.

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  • 9. 

    Because a landlord can lose control of the leased premises in either a sublease or an assignment, most lease agreements prohibit a tenant from either subleasing or assigning the property to another.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the correct answer is that in both subleasing and assigning, the tenant gives up control of the leased premises to another party. Therefore, to prevent any potential issues or conflicts, most lease agreements include a clause that prohibits the tenant from subleasing or assigning the property to someone else. This allows the landlord to maintain control over the property and ensures that they have direct communication and contractual relationship with the tenant.

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  • 10. 

    The law in Pennsylvania that affects leases and the rights and obligations of landlords and tenants is known as the Confession of Judgement Provision Act of 1972.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The law in PA that affects leases and the obligation of landlords and tenants is known as the Landlord and Tenant Act.

    The Confession of Judgement Provision is a provision in some leases in which by signing the lease, the tenant in effect gives up any legal rights supporting non-payment of rent by allowing a judgement to be entered in court against the tenant for the full payment of the rent. A tenant should be given an explanation of rights prior to signing a lease that contains a confession of judgement in order to fully understand what amounts to a waiver of one's legal rights.

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  • 11. 

    A net lease is one in which the lessor receives a gross amount of money as rent from the lessee and from that rent the lessor is ressponsible for paying most or all of the expenses on the leased property such as taxes, insurance, utility bills, etc.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    In a GROSS lease, the LESSOR/LANDLORD receives rent and is responsible for paying the majority of the the other expenses, such as utilities.

    In NET lease, the TENTANT/LESSEE pays rent and is also responsible for paying the majority of other expenses, such as utilities.

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  • 12. 

    A breach lease is a lease on land that provides separate ownership between the land and buildings. It is typically used to lease land in certain areas of the country or world in which the purchase of land is extremely expensive because it is in great demand.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    That is the definition of a GROUND LEASE.

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  • 13. 

    A periodic estate is the interest a tenant has in rental property for a specified period of time and then automatically terminates like the estate for years.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The periodic estate does NOT automatically terminate like the estate for years. The lease interest automatically renews such as in a month-to-month lease.

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  • 14. 

    The Pennslyvania law that regulates housing is known as the Pennsylvania Human Relations Act.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The Pennsylvania Human Relations Act is indeed the law that regulates housing in Pennsylvania. This act prohibits housing discrimination based on factors such as race, color, religion, sex, disability, and national origin. It ensures that individuals have equal opportunities to rent, purchase, and occupy housing without facing any form of discrimination. Therefore, the statement "The Pennslyvania law that regulates housing is known as the Pennsylvania Human Relations Act" is true.

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  • 15. 

    In an estate for years (tenancy for years), both the landlord and the tenant are required to give notice of termination.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Notice of termination is not required because the leasehold interest automatically ends by itself through the expiration of the time period.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 28, 2011
    Quiz Created by
    Sseveland
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