PRII Ch 25

A lease contract is best described as _________(25)

• temporary transfer of legal title.

• an instrument of conveyance of limited title.

• a conveyance of a possessory interest.

• a title conveyance in exchange for rent.

When a tenant acquires a leasehold estate through a lease, what does the property owner acquire?

• A freehold estate
• A reduced leasehold estate
• A leasehold estate
• A leased fee estate

When an owner leases her property, she temporarily relinquishes the right to

• transfer the property.
• encumber the property.
• occupy the property.
• maintain the property.

Which of the following happens when a leased property is sold?

• The buyer acquires title subject to the lease.
• The lease is cancelled.
• The lease expires within thirty days unless renewed.
• A new lease is automatically executed.

A landlord and tenant complete a one-year lease.  The following week, the landlord dies.  Which of the following is true?

• The lease is cancelled and must be re-written.
• The tenant must continue to abide by all lease terms.
• The tenant may annul the lease at his or her option.
• The landlord's heirs may cancel the lease at their option.

If a lease does not state a specific ending date, when does it terminate?

• Immediately, since it is an invalid lease
• After one year
• When either party gives proper notice
• Whenever the property is sold

In accordance with the Statute of Frauds,

• leases in excess of one year must be recorded to be enforceable.
• oral leases are not enforceable.
• a five-year lease must be in writing to be enforceable.
• an unwritten lease is fraudulent.

What is one important difference between a sublease and a lease assignment?

• In an assignment, responsibility for the original lease is transferred completely to the assignee.
• In a sublease, the original tenant retains primary responsibility for performance of the original lease contract.
• A sublease does not convey any of the leasehold interest.
• A sublease conveys the entire leasehold interest.

 Which of the following lease types conveys rights other than the rights to exclusive use and occupancy of the entire property?

• A rights lease
• A percentage lease
• A gross lease
• A net lease

An owner leases a property to a business in exchange for rent.  The tenant is required to pay all operating expenses as well.  This is an example of a

• proprietary lease.
• percentage lease.
• gross lease.
• net lease.