Font size
WorksheetsReal Estate Part 3
Total questions: 68
Worksheet time: 34mins
A leasehold estate includes
fewer ownership rights than does a freehold estate
created by a lease agreement
is for a limited duration
is for an unlimited time
A leasehold estate is
a transferring of an ownership interest (right of possession) in return for payment of rent and other obligations
refers to degree, quantity, nature, and extent of interest
a contract
includes fee simple and absolute and defeasible
For a leasehold estate, a landlord keeps
the reversion right to retake possession
the personal property
keeps all personal and real property
keeps the right to live on the property
The lessor is
the renter
tenant
lessee
owner of the property
The lessee is the
owner
lessor
tenant
landlord
The statute of frauds
requires the lessor to put out the tenant for non-payment
requires that a lease for a period longer than one year must be in writing to be enforceable
requires the tenant to make improvements of the home
requires the the tenant and the lessee to go to court to finalize contract
Types of leasehold estates
estate for years (definite period)
estate from period to period (indefinite period)
estate at will (indefinite period/consent of owners)
estate at sufferance (without consent of owner)
The leasehold estate for years
does not have an expiration date
is for year to year
goes to the tenant's heirs
is for a definite period of time
Is notice required to terminate a leasehold estate for years?
No
Yes
A leasehold estate for years can be for
a month
six months
a year
forever
A leasehold estate for years AKA
period to period
holdover tenancy
forever estate
estate for a stated period
Sale of the property or death of either the tenant or the landlord for an estate for years
does terminate the leasehold
does not terminate the leasehold
can be terminated by either party if sufficient notice is given
changes to a periodic tenancy
Unless the agreement states otherwise, if the tenant dies, the
the leasehold estate goes to the tenant's heirs
lease is terminated
the lease restarts
the lease is picked up by the other tenants
In a leasehold estate, the lease may be terminated before the expiration date by consent of the parties.
True
False
Periodic estates AKA
leasehold estates
freehold estates
period to period
tenancy at will
Periodic estates
do not have an expiration date
expires after one month
is a contact based on one year agreement
does have an expiration date that is chosen by lessor and lessee
Periodic estates can continue for an indefinite period of time
True
False
For periodic estates
the rent is paid at definite intervals, and each time it is paid, the lease is automatically renewed for a like period
the rent is paid periodically
the contract is terminated after one year
the tenants creates an encumbrance on the title
For periodic estates,
no written notice to terminate is required
parties must agree
can be terminated by either party if sufficient notice is given
notice must be given to end the estate
The tenant may possess the property with the consent of the landlord for an indefinite period and can be terminated by either party if sufficient notice is given. What is this?
Estate for years
Tenancy at Sufferance
Estate from Period to Period
Tenancy at Will
The tenant wrongfully remains in possession of the property after the right to posses has expired.
holdover tenancy
tenancy at sufferance
tenancy at will
periodic estate
If the landlord accepts the late rent, the tenancy at sufferance becomes
periodic tenancy
tenancy at will
estate for years
estate at sufferance
A tenancy at will ends if the property is sold.
True
False
Notice does not need to be given to end a periodic estate
True
False
If a landlord accepts a rent payment during a tenancy at sufferance, the tenancy may change to a periodic estate.
True
False
The statue of frauds requires leases of less than one year to be in writing.
True
False
Another name for an estate for years is an estate from period to period.
True
False
A leasehold estate that continues for an indefinite period of time
Lease agreement
Estate for years
Tenancy at will
Periodic estate
A tenant wrongfully stays on the property
Tenancy at sufferance
Tenancy at will
Lessor
Lessee
Another term for tenant
Lessor
Lessee
Tenancy
Agreement
A leasehold estate that continues for a definite period.
Estate for years
tenancy at sufferance
Periodic estate
Tenancy at will
A contract that transfers the right of possession.
Periodic estate
Reversion right
Tenancy at sufferance
Lease agreement
A tenancy with the consent of the landlord that can be terminated at any time.
Tenancy at will
Tenancy at sufferance
Estate for years
Periodic estate
A landlord is also
Lessor
Lessee
Tenant
Tenancy at Will
The right of the landlord to retake possession of the premises.
Tenancy will
Remainder right
Reversion right
Lessor
Types of Lease Agreements
Gross Lease
Net Lease
Percentage Lease
Variable Lease
Ground Lease
The most common type of lease
Percentage lease
Variable lease
Net lease
Gross lease
Gross lease AKA
Flat lease
Net lease
Straight lease
Surface lease
Gross lease
The rent is determined by a percentage of the gross income of the tenant.
The tenant pays a set amount of rent each month
The landlord pays all the building's expenses
The tenant pays some or all of the building expenses.
Net lease
The tenant pays a set amount of rent
Provides for a fixed minimum amount of rent plus a percentage of gross income over a base amount.
Most often used in commercial or industrial property
Tenant pays some or all of the building expenses.
The number of net determines the number of expenses paid by the tenant.
True
False
What is used almost exclusively for commercial property?
Net Lease
Percentage Lease
Gross Lease
Variable Lease
A percentage lease usually provides
a fix minimum amount of rent plus a percentage of gross income over a base amount
requires tenant to pay a set amount of rent plus some or all of the building expenses
allows for future changes in the amount of rent
rent would fluctuate based on the time of year might use a graduated lease
A percentage lease
refers to the number of expenses paid by the tenant
fluctuates based on the time of year might use a graduated lease
may include a recapture clause to reclaim the property if a minimum sales amount is not met.
A variable lease agreement does not allow for future changes in the amount of rent.
True
False
A graduated lease
provides for a fixed minimum amount of rent plus a percentage of gross income over a base amount
tenant pays a set amount of rent plus some or all of the building expense
is a long-term lease (usually for a period of 50 or more years)
arrangement allows for rent changes at predetermined future dates
An index lease
tenant leases the property for a period of time with the intention of purchasing the property
may include an escalator clause in the lease which ties the rent increase to the index
the rent change is based on a common index
receives rent from a company for allow drilling on the property
Ground lease
a long-term lease
leased on a month to month basis
short-term lease
most often used by businesses to lease undeveloped industrial or commercial property
Net leases are commonly used with industrial property.
True
False
Gross leases are most often used with commercial property.
True
False
Expenses paid for by the tenant under a net lease include the mortgage payment.
True
False
A percentage lease also may be either a gross or a net lease.
True
False
An arrangement in which a tenant leases a property with the intention of purchasing it.
Net lease
Gross lease
Lease-purchase
Ground lease
A lease arrangement in which part of the rent amount is determined by the gross income the tenant receives
Gross lease
Net lease
Graduated lease
Percentage lease
A long-term lease under which the tenant usually agrees to construct a building.
Index lease
Ground lease
Net lease
Percentage lease
The owner sells the property to an investor and then leases the property
Recapture clause
Sale and leaseback
Gross lease
Lease-purchase
A lease arrangement in which changes to the rent and made at set future dates
Index lease
Net lease
Gross lease
Graduated lease
A lease arrangement in which changes to the rent are based on a common index
Index lease
Recapture clause
Ground lease
Lease-purchase
A lease arrangement in which the tenant pays a fixed amount of rent and the owner pays the expenses on the building
Graduated lease
Percentage lease
Net lease
Gross lease
Allows the lessor to reclaim the property if a minimum sales amount is not met
Recapture clause
Index lease
Sale and leaseback
Ground lease
A lease arrangement in which the tenant pays a fixed amount of rent and some or all of the expenses on the building
Lease-purchase
Net Lease
Percentage lease
Graduated lease
The Department of Assessments and Taxation maintains an Online Registry of Properties that are subject to ground leases.
True
False
Registered ground leaseholders are not entitled to a lien against the property for the amount owed, and the leaseholder may not foreclose upon the lien if the rent goes unpaid after a reasonable time.
True
False
If a ground lease is not registered, the ground lease holder may not
Collect any ground rent payments due under the ground lease
Bring an action against the leasehold tenant under the ground rent laws
reclaim the property with policy protection
Bring a civil action against the leasehold tenant to enforce any rights the ground lase holder may have under the ground lease
There are three ways in which individuals can own property with another individual in Maryland.
Tenancy in common
Joint tenancy
Tenancy at will
Tenancy by entirety
Tenancy in common means
interests are divisible
ownership can be held in unequal percentages
there are no rights of survivorship
the property is not shielded from the lien creditors of the other tenants in common
In tenancy in common
ownership can be held in unequal percentages
ownership cannot be held in unequal percentages
there are no rights of survivorship
there are rights of survivorship
In Tenancy in common, judgment can be issued to seize a portion of the property that is specific to the lien holder.
True
False
