Real Estate Fundamentals - Chapter 7: Rental Of Real Property

A lease is a legally binding agreement between a property owner (landlord) and a tenant, where the landlord grants the tenant the right to occupy and use the property for a specified period of time in exchange for rent payments. This statement accurately describes the nature of a lease, making the answer "True" correct.

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.

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.

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.

Landlord = Lessor
Tentant = Lessee

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.

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.

This is known as a Tenancy at Sufferance or a Holdover Tenant.

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.

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.

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.

That is the definition of a GROUND LEASE.

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.

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.

Notice of termination is not required because the leasehold interest automatically ends by itself through the expiration of the time period.