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39 Cards in this Set
- Front
- Back
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The owner of real estate who leases it to another is called a: vendor lessee lessor grantor |
A: lessor The lessor is the landlord; the lessee is the tenant. |
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When tenants hold possession of a landlord's property without a definite lease term or arrangement, but with the landlord's approval, this is called: tenancy in common joint tenancy tenancy at will trespass |
A: tenancy at will Tenancy at will can be terminated at any time by notice from either party. |
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"The act of conducting the business or affairs for a property owner, including leasing, collecting rents, and supervising repairs and employees for a fee" is a definition of: property management financing brokerage agency |
A: property management Property management is the business of managing the affairs of a property owner. It does require a real estate license. |
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Tenant Teri signs a six-month lease and agrees to pay $375.00 a month in rent, utilities included, on an apartment unit. Teri moves out after two months because the electrical service has been cut off. Teri: Is in violation of her lease and is obligated to continue paying rent Is not obligated to continue making rent payments as she has been constructively evicted Has been actually evicted and need not continue paying rent Has abandoned the property and may be sued for specific performance |
A: Is not obligated to continue making rent payments as she has been constructively evicted This is constructive eviction |
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You answered this question incorrectly Which of the following provisions is not essential to the validity of a lease? Competent lessor and lessee Rent provision Judgment clause All of the above |
A: Judgment clause A judgement clause is usually found only in a commercial lease and is infrequently used. |
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The covenant implied in a lease that ensures that the tenant will not be evicted by someone claiming prior ownership to that of the lessor is the: covenant of quiet enjoyment covenant of warranty forever covenant against encumbrances |
A: covenant of quiet enjoyment A tenant has the exclusive right to possess real property because of the implied covenant of quiet enjoyment. |
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The authority to carry out eviction of a delinquent tenant from rented property is held by: a landlord the sheriff any of the above |
A: the sheriff The short version is this - a landlord may request an eviction - but only a sheriff has the authority to physically perform one.A fuller explanation of the procedure is; a landlord requests the courts to issue a judgment for an eviction by filing a "unlawful detainer action" in a court. An "unlawful detainer" is a legal way of saying the tenant refuses to give up possession - they are detaining the property from the landlord. If the judge agrees, s/he issues a “writ of execution” which is a court order to a sheriff to physically perform the eviction. |
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Assume that Mr.and Mrs. Davis did not sign the lease agreement, but upon taking possession of the apartment on August 1 were handed a signed copy by landlord Smith. On August 20, Mr. and Mrs. Davis move out claiming that since they had not signed the agreement, it was a mere tenancy at will. Smith could: sue Davis immediately for the unpaid portion of the lease lease the apartment and upon expiration of the lease, sue Davis for the difference between what he received and what Davis should have paid keep only the security deposit |
A: sue Davis immediately for the unpaid portion of the lease By taking possession, Mr. and Mrs. Davis impliedly accepted the agreement and would be liable for the unpaid portion. Only the lessor needs to sign the lease. |
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A lease that will terminate less than one year from the date of the agreement: is invalid is not allowed in this state must be in writing may be oral, but is likely unenforceable in court |
A: may be oral, but is likely unenforceable in court A lease that can be accomplished in less than a year does not have to be in writing however it is generally unenforcable in court unless the subject of the legal action admits in court a lease term.There is a legal doctrine followed in all common law jurisdictions (like Colorado) called the "Statute of Frauds."In Colorado the applicable statute is Colo. Rev. Stat. § 38-10-108 (2004). It declares that:"Every contract for the leasing fora longer period than one year or for the sale of any lands or any interest in lands is void unless the contractor some note or memorandum thereof expressing the consideration is in writing and subscribed by the party by whom the lease or sale is to be made." |
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Rent is best defined as: contractual consideration to a third party consideration for the use and possession of real property all monies paid by lessor to lessee consideration paid by the first of the month |
A: consideration for the use and possession of real property Rent is the consideration paid by the lessee to the lessor for the use of real property. |
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An office rents for $4500 a month and measures 12 feet by 20 feet. The advertised monthly rent per square foot for this space would be: 1.875 18.75 4.5 22.5 |
A: 18.75 12 x 20 = 240 $4500 / 240 = $18.75 |
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A property manager is normally compensated in all but one of the following ways: commission on new leases percentage of gross profits percentage of repair and major maintenance savings rebates and discounts on equipment and supplies |
A: rebates and discounts on equipment and supplies Savings from rebates and discounts should benefit the property owner, not the agent. |
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The options of a property manager in dealing with a risk are: to avoid to retain it to transfer it all of the above |
A: all of the above A property manager may deal with a risk by removing it, retaining it by insuring against it with a large deductible, or transfer it by taking out an insurance policy. |
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Should the lessor die after the lease has been signed by all parties; what happens to the lease? Rescinded Renegotiated Unchanged Cancelled |
A: Unchanged The lease remains in force if the landlord or lessor dies. |
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To be effective a lease must be: delivered recorded sealed defeated |
A: delivered A lease must be delivered to be effective. |
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In the event that it is necessary for a landlord to remove a tenant from the premises, he or she does it by: refunding money paid using physical force filing an eviction suit filing a complaint with the FHA |
A: filing an eviction suit Filing an eviction suit or suit for possession may result in an unlawful detainer action (the tenant being removed from the property). |
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Which of the following leases would best protect the interests of a lessee from a lessor’s desire to terminate the lease? Tenancy at will Tenancy for years Tenancy at sufferance Tenancy from month to month |
A: Tenancy for years Tenancy for years has a definite ending date. |
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When a tenant sublets all or any part of rented property under a written lease: the tenant assigns all legal rights, title, and interest in the rented property to the new lessee the sublessee becomes primarily responsible to the landlord for payment of rent and upkeep of the property the original lease is automatically canceled, and the sublessee takes possession of the rented property on a month-to month basis the original lease is unaffected, unless it contains a provision prohibiting subletting |
A: the original lease is unaffected, unless it contains a provision prohibiting subletting The original tenant in a sublease situation still has the primary responsibility for the lease, unless subletting is prohibited in the lease. |
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A lease in which the tenant pays rent plus maintenance and property charges is a gross lease. fee simple estate. net lease. percentage lease. |
A: net lease A lease in which the tenant pays rent plus maintenance and property charges is a net lease. |
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After a tenant gave notice and vacated an apartment, the landlord discovered substantial damage to the unit. No time was set in the lease specifying the length of time the landlord had to account or refund the security deposit after deductions. Which of the following is an appropriate action by the landlord? return the deposit immediately and bill the tenant for the repairs when completed if the damage is obviously more than the deposit, the landlord may keep the damage deposit without notice notify the tenant that his or her damage deposit is forfeited within 60 days itemize the damage in writing and return any excess deposit within one month |
A: itemize the damage in writing and return any excess deposit within one month The maximum amount of time a landlord can specify in a lease that they will hold a security deposit after lease termination is 60 days. If no time was specified in the lease, the default maximum is 30 days. |
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Property management security deposits Must be held by the property owner May be held in the management trust account Should be held in a separate, security deposit trust account by the property manager Are normally used for property expenses until needed for return to the tenant. |
A: Should be held in a separate, security deposit trust account by the property manager Commission rules call for security deposits to be held in a separate trust account to prevent commingling with operating expenses. |
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Ordinances that specify construction standards when repairing or erecting buildings are known as: equipment codes building codes variances permits |
A: building codes This is a definition of building codes. |
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Under the Federal and State Fair Housing Acts, which of the following may a landlord refuse to rent? commercial space for use as a studio for African American art because the studio would "attract the wrong element" an apartment to three students for fear they will have loud parties an apartment to a single mother because the landlord is worried about who will supervise her child after school a gay couple |
A: an apartment to three students for fear they will have loud parties Students are not a protected class under the Colorado Fair Housing Act so a landlord may refuse to rent an apartment to them.Colorado is one of a majority of states that has its own fair housing law.If you're renting or looking for an apartment in Colorado, you're covered by the Fair Housing Act (FHA), a federal law, which protects tenants and prospective tenants alike from illegal housing discrimination based on the following protected classes:racecolorreligionnational originsexdisabilityfamilial status.In addition to these protected classes, Colorado offers legal protection based on:creedsexual orientationmarital statusancestry.Caution: There are two under Colorado law:• Housing operated by religious organizations and private clubs which may give preference to or limit occupancy to members• For familial status only: certain housing operated for seniors 55 and older, or 62 and older, with specific other requirements to meet the qualifications of the exemption |
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A broker who insisted a walking impaired tenant rent a lower floor unit because of safety reasons: should make sure the lower floor unit is accessible is in violation of the Federal Fair Housing laws should charge a higher deposit to make the unit accessible can have their licensed revoked immediately for violation of fair housing laws |
A: is in violation of the Federal Fair Housing laws This safety issue is the decision of the tenant – not the broker. |
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Typical functions of a property manager include all of the following except maintaining quality service with the lowest possible expenses. generating the highest return for the owner. selling the property at the highest price for the owner. keeping the property in good repair. |
A: selling the property at the highest price for the owner. A property manager does not sell the property. |
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To terminate an estate for years leasehold estate, how much notice must be given? 60 days 30 days 90 days None of the above An estate for year’s leasehold automatically ends on the last day of the term.Therefore, no notice is necessary. |
A: None of the above An estate for year’s leasehold automatically ends on the last day of the term.Therefore, no notice is necessary. |
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A situation in which the tenant's lease has expired and the tenant is no longer paying rent, but is living on the property is known as: an estate for years estate at will estate from period to period estate at sufferance |
A: estate at sufferance In an estate at sufferance, the tenancy is by a lessee who lawfully occupies the landlord's property, but then continues to occupy the property improperly after his rights have expired and the lessor "suffers" from not having the unit available to rent. |
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A tenant's lease has expired, and the tenant has not vacated or negotiated a renewal lease. The landlord has declared that he does not want the tenant to remain in the building. The occupancy is normally called: estate for years estate from year to year estate at will estate at sufferance |
A: estate at sufferance When a landlord does not want the tenant to remain on the property there is an estate at sufferance (the landlord is suffering). |
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Frank and Betty Taylor's apartment lease has expired, but their landlord has indicated to them, that they may remain on the premises until a sale of the building is closed. The Taylor's will be charged their normal monthly rent during this period. Their tenancy may be called a(n): year-to-year holdover estate for term estate at sufferance estate at will |
A: estate at will A tenancy at will often occurs upon the expiration of an estate for years. |
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If a building collapsed, and the tenant was forced to move out, this could be called: actual eviction effective eviction illegal construction constructive eviction |
A: constructive eviction Constructive eviction occurs when property is not habitable. |
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A broker has a 4 year contract to manage a property for an investor. The broker will receive 50% of the first month's rent and 5% of each remaining month. The rent is $600, how much will the broker receive over the term of the agreement. 1710 2480 2580 3080 |
A: 1710 The broker gets 50% or $300 for the first month and he will get 5 % or $30 for each additional month times 47 = $ 1,410 + $300 = $1,710. |
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A retail space was leased for $1,200 per month; The owner also pays the shopping center 8% of gross income which is $50,000 monthly. How much does the owner pay annually? 62400 48000 14400 1200 |
A: 62400 Multiply $50,000 by 8% = $4,000 X 12 = $48,000 + ($1,200 X 12 = $14,400) $14,400 = $62,400 |
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Which one of the following is not a person who acquires title to real estate? Vendee Devisee Grantee Lessee |
A: Lessee A lessee is the holder of a lease estate; therefore he does not actually have title to real estate. |
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A tenant's, written, estate for years lease will expire on May 1. In order to obtain possession on May 1, the landlord must give the tenant: 30 days' notice 60 days' notice no notice notice on April 30 |
A: no notice An estate for years lease requires no notice for termination by either the landlord or the tenant. |
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Mr. Rob leases an apartment to Ms. Hall. Mr. Rob is called: lessee lessor vendor vendee |
A: lessor One who rents out the property is called the lessor. |
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Under the provisions of the ordinary store lease, trade fixtures that remain in the store at the expiration of the lease term will be the property of the: lessee lessor tenant chattel mortgage |
A: lessor If trade fixtures are not removed at the expiration of a lease by a tenant, they become part of the real property. |
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The tenant may remove trade fixtures that have been affixed to a building if: this is done after the lease expires the space is restored to its original condition The space is renovated for the new tenant The tenant is not allowed fixtures that have been attached to the building |
A: the space is restored to its original condition Trade fixtures are personal property of the tenant and may be removed prior to the expiration of a lease as long as the property is returned to its original condition. |
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Fred Thompson rents an apartment under a two-year written lease. He has occupied the apartment for one full year, and now the landlord is selling the apartment building to a new owner. So far as Thompson's lease is concerned: the sale has no effect on Thompson's tenancy it is automatically terminated, and he must renegotiate with the new owner the new landlord will decide whether or not to renew Thompson's lease for a full lease period it is terminated after 60 days' notice by the new owner |
A: the sale has no effect on Thompson's tenancy A sale of real property is subject to any leases or tenancies that exist on that property. |
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As part of his new property management business, Ron Dvorak has just agreed to manage several downtown apartment buildings for an owner. As a property manager Dvorak must: collect rents and keep detailed accounting records be a licensed real estate broker not commingle rents with his own money all of the above |
A: all of the above A property manager must be a real estate licensee; keep financial records, collect rental incomes and deposit them into a trust account.Property managers who offer their services to the public have to have a real estate license regardless of the type of property. It is that they offer their services to the public that bring it under the jurisdiction of the Real Estate Commission. Someone who mans a rental office in one building is specifically exempted from needing a license |
