National American University

BUSINESS L 3100

Chapter 51-LEASES

TRUE/FALSE

1)A lease is the relationship by which one person is in lawful possession of real property owned by another.

2. The relationship of landlord and tenant is always created by an express contract.

3. In almost all states, a periodic tenancy is implied if the tenant, with the consent of the landlord, stays in possession of the property after a tenancy for years.

4. When a lease runs for an indefinite period, which may be terminated at any time by the landlord or the tenant, a tenancy at will exists.

5. A tenancy by sufferance describes a tenancy that can be terminated at any time upon proper notice.

6. Under the common law, the reason a landlord terminates a lease by notice is immaterial.

7. A tenancy for years terminates at the expiration of the specified term, regardless of whether one party gives the other any notice of termination.

8. A provision in a lease giving the landlord the right to terminate the lease by notice is strictly construed against the tenant.

9. If a leased building is destroyed, the lease is not terminated, and the landlord has a duty to restore the building to its former condition.

10. Renewal provisions in a lease are strictly construed against the tenant.

11. The rights and duties of the landlord and tenant are based on principles of real estate law and contract law.

12. Generally, the tenant has the right to the exclusive possession of the premises during the term of the lease.

13. Inference occurs when a landlord prevents a tenant from accessing the property.

14. The covenant of quiet enjoyment protects the tenant from interference with possession by the landlord or the landlord’s agent, and it also imposes liability on the landlord for the unlawful acts of third persons.

15. A tenant can claim that there has been a constructive eviction even if the tenant continues to occupy the rented premises.

16. An act or omission of the landlord that substantially deprives the tenant of the use and enjoyment of the premises is a constructive eviction.

17. Unless restricted in the lease, a tenant may generally use the premises for any lawful purpose for which they are adapted.

18. If the tenant uses the property for any purpose other than the one specified in the lease, the landlord has the option to declare the lease terminated.

19. A lease provision requiring a tenant to obey regulations that may be subsequently adopted by the landlord is void because it is unconscionable.

20. The assignment of a lease discharges the original tenant from the duty to pay rent.

21. In a residential lease, it is commonly held that there is an implied warranty of habitability.

22. Making improvements is a duty that falls on the tenant.

23. In the absence of an agreement to the contrary, a tenant is not liable for increased taxes imposed on the rented property by a general tax increase.

24. A landlord has the right to enter a leased property to make repairs without notifying the tenant.

25. A lessor can always refuse to renew the lease of a tenant who reports the landlord to the fire department for violation of fire safety laws.

26. Under the common law and the majority rule, a landlord has no duty to mitigate damages when the tenant abandons the premises before the expiration of the lease.

27. Ordinarily, the landlord is not liable to the tenant for crimes committed on the premises by third persons, such as when a third person enters the premises and commits larceny or murder.

28. A landlord is ordinarily not liable to third persons injured because of the condition (not existing at the time the lease was created) of any part of the rented premises that is in the possession of a tenant by virtue of a lease.

29. A tenant in possession has control of the property and is therefore liable when the tenant's failure to use due care under the circumstances causes harm to licensees or invitees.

30. A sublease and an assignment of a lease accomplish the same results.

MULTIPLE CHOICE

1. In a lease agreement, the person who owns the real property and permits the occupation of the premises is known as the                        , and the person who occupies the property is known as the

                         .

1. 1. lessor; lessee
   2. lessee; lessor
   3. grantor; grantee

1. 4. grantee; grantor

2. Many states provide that a lease for a term exceeding                     must be in writing.
   1. three (3) months
   2. six (6) months
   3. one (1) year
   4. three (3) years

3. A provision in a residential lease stating that the landlord cutting off heat or water will not constitute an eviction is:
   1. valid.
   2. a stipulation.
   3. a covenant.
   4. unconscionable.

4. A tenancy for an indefinite time period that may be terminated at any time by landlord or tenant is called a tenancy:
   1. at will.
   2. for years.
   3. at sufferance.
   4. from year to year.

5. When a tenant remains in possession after the termination of the lease without permission of the landlord, the landlord may treat the tenant as either a trespasser or a tenant. Until the landlord elects to do one or the other, a tenancy                                           exists.
   1. at sufferance
   2. at will
   3. for years
   4. from year to year

6. When a lease covers rooms or an apartment in a building, a destruction of the leased premises:
   1. temporarily suspends the tenant’s obligation to pay rent.

1. 2. terminates the lease.
   3. requires the landlord to repair or restore the property.
   4. has no effect on the obligations of the tenant or the landlor

7. An express promise by a landlord to not disturb the tenant’s possession of the land is known as the covenant of:
   1. domesticity.
   2. tranquil possession.
   3. quiet enjoyment.
   4. unfettered use.

8. A term of a lease required that the landlord provide exterminating services monthly to control rats and other pests. The landlord failed to do this despite numerous requests placed by the tenant, and the premises became overrun by rats. This may be considered:
   1. a breach of the covenant of quiet enjoyment.
   2. a physical eviction.
   3. active waste.
   4. a constructive eviction.

9. If a lease is assigned, who is liable for the rent?
   1. the assignor
   2. the assignee
   3. either the assignor or the assignee, but not both
   4. the landlord can collect from both the assignor and the assignee

10. Rent is automatically increased:
    1. if the lessor makes expensive improvements to the property.
    2. when the cost of living increases.
    3. if the lease contains an escalation clause.
    4. if the lessor's taxes on the rented property are increase

11. A landlord has the right to enter a leased premises without notice:
    1. for emergency purposes.
    2. for repairs and evaluations.
    3. both a. and b.
    4. none of the above.

12. Igor immigrated to the United States and sought to rent an apartment. He answered an advertisement in a newspaper and signed a lease for an apartment without ever seeing the apartment. Igor found the premises filled with an abundance of debris, rats and insects. Also, the plumbing in the apartment was inoperable. These conditions:
    1. do not affect the lease unless the landlord affirmatively warranted the condition of the premises.
    2. are the responsibility of the tenant to repair.
    3. most likely constitute a breach of the implied warranty of habitability.
    4. do not entitle Igor to vacate the premises.

13. If taxes or assessments on leased premises are increased because of improvements made by the tenant the:
    1. landlord is only liable for such increases if the improvements stay with the property.
    2. landlord is liable for such increases whether or not the improvements stay with the property.
    3. landlord is liable for such increases only to the extent that the improvements actually increase the fair market value of the property.
    4. tenant is always liable for such increases.

14. Which of the following is an example of a legal restriction that may be imposed on a tenant’s deposit?
    1. A statutory limitation on the amount of the deposit.
    2. A requirement that the landlord hold the deposit in a trust fund.
    3. A requirement that the landlord pay interest for the period the deposit is held.
    4. All of the above.

15. If a tenant fails to pay rent on time the landlord:

1. 1. has an automatic lien on the tenant’s personal property for the money due.
   2. has the right to lock the tenant out of the property.
   3. may take legal steps to evict the tenant.
   4. all of the above.

16. A                           action restores the property to the landlord’s possession unless the tenant complies with payment requirements.
    1. forcible entry and detainer
    2. forcible exit and retainer
    3. passive entry and detainer
    4. passive exit and retainer

17. A landlord is most likely liable to a tenant who is injured by:
    1. a defective condition of the leased premises that is under the control of the tenant.
    2. an obvious condition of the leased premises known to the tenant at the time the lease was made.
    3. an unforeseeable criminal act of a third person.
    4. the criminal act of a third person, when such conduct was reasonably foreseeable.

18. A provision in a residential lease excusing a landlord from liability for damage caused by water, snow, or ice is                                      .
    1. enforceable
    2. enforceable, but only in those areas of the United States that are unusually exposed to adverse weather conditions
    3. void
    4. voidable

19. A tenant in possession has control of the property and is liable when his or her failure to use due care under the circumstances causes harm to:
    1. invitees.
    2. licensees.
    3. trespassers.