Real Estate Principles Chapter 10

Front 1

Max owns a townhouse in Sacramento. He is in the process of leasing it to Hannah. The contractual lease states Hannah Scott will be leasing Max Thomas' townhouse for two years beginning July 1. She will be paying $1,000 per month due by the first of each month. The lease clearly states Max will be the landlord of the townhouse and Hannah the tenant. Is there a minimum requirement for a California lease missing?

Back 1

a) No, the lease has met all of the minimum lease requirements of the state of California.
b) Yes, the missing minimum requirement is the absence of the issue of a security deposit.
c) Yes, the missing minimum requirement is the absence of any assignment and subleasing options.
d) Yes, the missing minimum requirement is the absence of a sufficient description of the property, such as an address and/or a legal description.

Front 2

Dr. Mullins own a home he leases to college students. The tenants have been complaining to Dr. Mullins of bats in the attic. At times, the bats have flown downstairs into the living areas of the home. Recently in the area, a man was bitten by a rabid bat. The students are worried and are unsure of their rights. Which guarantee covers the tenants' right that the property meets the minimum health and housing codes?

Back 2

a) Implied Right of Habitability
b) Reversionary Right
c) Leasehold Interest Right
d) Possessory Right

Front 3

Samir Shah is a landlord leasing apartments for residential use. He will be updating the lighting fixtures in his units during the month of January. He has been having his maintenance crew enter the units at will to make the changes. Several of the tenants have been surprised, frightened, and inconvenienced. Is it acceptable for Samir's employees to enter unannounced?

Back 3

a) Yes, the landlord may enter the rental property at any time to make necessary or agreed repairs, decorations, alterations, or improvements.
b) No, although it is an acceptable reason for the landlord to enter the units, they must give the tenant at least a 24-hour notice and enter between normal business hours.
c) No, the landlord may only enter the rental property in case of emergency; to supply necessary or agreed services; when the tenant has abandoned or surrendered the premises; or under a court order.
d) Yes. Because the landlord has okayed the entrance by his representatives for work to improve the rental properties, it is acceptable for the unannounced entrances.

Front 4

Which of the following is not a type of leasehold estates?

Back 4

a) An Estate for Years
b) An Estate from Period to Period
c) Index Lease
d) Estate at Will

Front 5

Renee is leasing her condo in San Francisco from Brad. For the first six months of the lease, her rent will be $1,200 per month. Every six months her rent will increase $100 per month based on the increases to Brad in taxes, insurance, and other operating costs. What type of lease has Renee signed?

Back 5

a) Index Lease
b) Graduated Lease
c) Escalator Clause Lease
d) Economic Rent Lease

Front 6

Shanta is renting beachfront property in Malibu. The unfurnished bungalow has two bedrooms, one bathroom, and is right on the beach. Shanta's monthly rent is $1,600. Her landlord, Harold, is requiring a $6,400 nonrefundable security deposit. This amount includes her first month's rent. Is this an acceptable amount for a security deposit?

Back 6

a) No, the maximum security deposit allowed in California for an unfurnished property is two months' rent. The correct amount would be $4,800, including the first month's rent. Additionally, security deposits cannot be labeled as nonrefundable.
b) No, the maximum security deposit allowed in California for an unfurnished property is one month's rent. The correct amount would be $3,200, including the first month's rent and the security deposit. Additionally, security deposits cannot be labeled as nonrefundable.
c) Yes, the maximum security deposit allowed in California for an unfurnished property is three months' rent. The amount of $6,400 includes the first month's rent. However, the security deposit cannot be labeled as nonrefundable.
d) No, there is not a maximum security deposit regulation in California. Landlords may decide on the amount based on the property's value

Front 7

Jonathan rents a two bedroom house from Samantha and Gerald. The plumbing keeps backing up into the basement, leaving water and sewage on the basement floor. Jonathan has repeatedly reported this issue to Samantha and Gerald. He has made telephone calls and spoken to each landlord; he has also sent a written request with proof of delivery. It has been two months and not only has nothing been done, they have not even responded to his calls or requests. What are Jonathan's options, if any?

Back 7

a) Jonathan may file suit in civil court to force Samantha and Gerald to either make the repairs or refund his rent, with interest, and any damages and costs.
b) Jonathan has a couple of options available to resolve this issue. He may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises, Jonathan is relieved from paying additional rent and other conditions of the lease.
c) Jonathan's only option is to abandon the premises. If he does so, he is relieved of any rent or other conditions of the lease.
d) Jonathan may surrender the lease and end any further obligations to the contract

Front 8

Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is located is going through a major widening and most of the homes are going to be leveled for the project. Through eminent domain, Michelle must sell her home to the city for the construction. What is the required length of notice Luis must receive from Michelle in terminating the lease?

Back 8

a) Michelle must give Luis a thirty-day written notice of the lease termination.
b) Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.
c) Michelle does not have to give Luis any sort of notice due to the eminent domain. He must vacate the premises within the week of the sale to the city.
d) None of the above.

Front 9

Jeff and Ryan rent a house from Mike and Yolanda Reynolds. They are three months behind in their rent and neighbors have been complaining about the noise coming from the home. Mike and Yolanda have tried to work with Jeff and Ryan to help them get back on track with the tardy rent, but the guys are not cooperating. Mike and Yolanda have decided they have no choice but to start the eviction process. Mike wants to just go in and remove the possessions, shut off all the utilities, and change the locks. Yolanda believes Mike's idea may be illegal and thinks there are other options. Is she correct and, if so, what are the options?

Back 9

a) No, Yolanda is not correct on both points. Mike's idea is not illegal. Jeff and Ryan are behind by three months in their rent payments. Mike has every right to remove the guys and their possessions from the property.
b) Yes, Yolanda is correct. It is illegal for Mike to take such actions. The landlords may serve the tenants with either a seven-day or fifteen-day notice of eviction.
c) Yes, Yolanda is correct. It is illegal for Mike to take such actions. The landlords may serve the tenants with either a three-day or thirty-day notice of eviction.
d) Yes, Yolanda is correct. It is illegal for Mike to take such actions. They must file an unlawful detainer in court, and the tenants can be forcibly removed by the sheriff.

Front 10

What circumstances require a lease to be in writing?

Back 10

a) California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year, or has a term of less than one year, which expires more than one year after the agreement is reached.
b) The California Bureau of Real Estate requires a lease to be in writing if it has a term of one year or longer; or has a term of less than one year, which expires more than one year after the agreement is reached.
c) California Civil Code Section 1942 requires a lease to be in writing if it has a term or one year or longer; or has a term of less than two years, which expires more than one year after the agreement is reached.
d) The Commissioner of Real Estate requires a lease to be in writing if it has a term or two years or longer; or has a term of less than one year, which expires more than one year after the agreement is reached.