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10 Cards in this Set
- Front
- Back
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Sampson sold a house he owned that was occupied by Rawlins under a one-year lease having six months to run. What is Rawlins' position in view of this sale? |
Rawlins' lease continues until its expiration. If there are no provision in the lease to the contrary, common law provides that a tenant's right of possession is uninterrupted by transfer of ownership of the leased fee. Rollins' rights and responsibilities as a tenant continue until the original end of the lease. |
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What is a landlord who holds a tenant's security deposit of $2,400 required to do? |
Credit the tenant's deposit with $72 interest after one year. Maryland statues require that landlords credit tenants' security deposit account with 3% per annum simple interest, computed in six-month intervals, but not compounded. Therefore, a deposit of $2400 would earn $72. |
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In Maryland, which of the following leases does NOT need to be acknowledged and recorded? |
7-year apartment lease. A lease for seven years or less need not be recorded, but a lease for more than seven years must be recorded. Acknowledgment before a notary would be required for recordation. |
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Jane Builder has just completed a new house, which she is offering for sale at $ 240,000 with fee simple title. If, to satisfy an immediate buyer, she creates a ground lease requiring $720 a year ground rent at a 6% redemption rate, which of the following situations would be created? |
She can reduce the sale price to $228,000. An annual ground rent of $720, capitalized at the rate of 6%, suggests that the value of the land alone is $12,000 (720 divided by 0.06). By not selling the land to the buyer, the builder can lower his price for the property by $12,000 to $228,000. |
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Arthur Buyer is interested in purchasing a residence for $325,000 with a ground rent of $1,250. When the deal is done, what will Arthur receive? |
A leasehold estate subject to an annual grond rent of $1,250. Arthur will receive a leasehold on an improved lot with ground rent as stated. |
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What kind of estate does a woman get who buys and occupies a house but has to pay a semiannual ground rent? |
A leasehold estate. One who pays rent for the land she possesses holds a leasehold estate. |
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Why are ground rents often originated? |
To reduce the amount of cash required to purchase a property. One purpose for which ground rents are created is to make the purchase of a developer-built house more affordable. The buyer buys the house but rents the lot rather than buying the land outright. |
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What will it cost to redeem a parcel when its ground rent is $600 a year? |
Six percent will require $10,000. The annual ground rent divided by the capitalization rate gives the cost fo redemption. Example 2 is the only one of the four that satisfies this formula ($600 divided by 0.06 - $10,000). |
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What is the process by which a residential landlord has a court seize and sell a tenant's personal property for unpaid rent called? |
Distraint. Court seizure and sale of a residential tenant's personal property for unpaid rent is called distraint. |
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Which of the following provisions, if included in residential leases in Maryland, is enforceable? |
Tenants agree to pay the landlord a 5% penalty for late rent payments. Five percent of one month's rent is a penalty for late payment allowed by Maryland statute. The other provisions may appear in a lease, but they are unenforceable in court and any attempt to enforce them is itself a violation of the law. |
