Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024
MA Salesperson Exam Module 7: Leases
Study Guide Solutions
Leases - ANSWER✔✔--also known as tenancy for years, estate for years, interest for years, or demise
-written conveyance of possession but not ownership of real estate, for some specific period of time
privity of estate - ANSWER✔✔-a legal relationship between two people with interests in the same
property
the longest lease can last - ANSWER✔✔-99 years
leases longer than 7 years - ANSWER✔✔-must be recorded in the state or MA
Leases are - ANSWER✔✔-non-freehold interests
revisionary interest - ANSWER✔✔-right to regain possession after the lease is over
usable square footage - ANSWER✔✔-the actual square footage the lessee can occupy within the walls of
the leased premises and is responsible for
rentable square footage - ANSWER✔✔-the leased premises plus a percentage of any common areas
maintained by the lessor and used by the lessee
additional square footage - ANSWER✔✔-also known as common area load, common area factor, or load
factor and ranges from 5-15% of the usable square footage in commercial leases
rent calculated in commercial leases - ANSWER✔✔-based on annual price per square foot
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, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024
build out - ANSWER✔✔-fit up, fit out
the landlord or tenant pays to modify the space for a particular business
lease negotiation decided if the tenant or lessor pays for this, is often split
leases run - ANSWER✔✔-with the land
Certificate of No defense - ANSWER✔✔-or estoppel certificate, used to confirm the lease when the
property is sold
doctrine of estoppel - ANSWER✔✔-states that once you cause another to rely on your words you cannot
go back on your promises. Prevents the tenant from attempting to renegotiate or defraud the new
property owner. Also used when loans are sold, and verbal tenancy agreements
subletting - ANSWER✔✔-the act of transferring a portion of one's rental interest to a third party
assigning - ANSWER✔✔-the transfer of all the remaining interest to a third party
novation - ANSWER✔✔-the cancellation of the lease contract, and transfer of the remaining portion of
the lease to a third party under a new contract. Relieves the lessee of their obligations under the lease
Termination of lease via performance - ANSWER✔✔-leases automatically terminate at the end of their
term
Termination of lease via surrender - ANSWER✔✔-cancellation of the lease prior to expiration
Termination of lease via action of law - ANSWER✔✔-eminent domain taking, tax sale, bankruptcy
Termination of lease via destruction - ANSWER✔✔-the property is damaged
Copyright ©Stuvia International BV 2010-2024 Page 2/6
MA Salesperson Exam Module 7: Leases
Study Guide Solutions
Leases - ANSWER✔✔--also known as tenancy for years, estate for years, interest for years, or demise
-written conveyance of possession but not ownership of real estate, for some specific period of time
privity of estate - ANSWER✔✔-a legal relationship between two people with interests in the same
property
the longest lease can last - ANSWER✔✔-99 years
leases longer than 7 years - ANSWER✔✔-must be recorded in the state or MA
Leases are - ANSWER✔✔-non-freehold interests
revisionary interest - ANSWER✔✔-right to regain possession after the lease is over
usable square footage - ANSWER✔✔-the actual square footage the lessee can occupy within the walls of
the leased premises and is responsible for
rentable square footage - ANSWER✔✔-the leased premises plus a percentage of any common areas
maintained by the lessor and used by the lessee
additional square footage - ANSWER✔✔-also known as common area load, common area factor, or load
factor and ranges from 5-15% of the usable square footage in commercial leases
rent calculated in commercial leases - ANSWER✔✔-based on annual price per square foot
Copyright ©Stuvia International BV 2010-2024 Page 1/6
, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024
build out - ANSWER✔✔-fit up, fit out
the landlord or tenant pays to modify the space for a particular business
lease negotiation decided if the tenant or lessor pays for this, is often split
leases run - ANSWER✔✔-with the land
Certificate of No defense - ANSWER✔✔-or estoppel certificate, used to confirm the lease when the
property is sold
doctrine of estoppel - ANSWER✔✔-states that once you cause another to rely on your words you cannot
go back on your promises. Prevents the tenant from attempting to renegotiate or defraud the new
property owner. Also used when loans are sold, and verbal tenancy agreements
subletting - ANSWER✔✔-the act of transferring a portion of one's rental interest to a third party
assigning - ANSWER✔✔-the transfer of all the remaining interest to a third party
novation - ANSWER✔✔-the cancellation of the lease contract, and transfer of the remaining portion of
the lease to a third party under a new contract. Relieves the lessee of their obligations under the lease
Termination of lease via performance - ANSWER✔✔-leases automatically terminate at the end of their
term
Termination of lease via surrender - ANSWER✔✔-cancellation of the lease prior to expiration
Termination of lease via action of law - ANSWER✔✔-eminent domain taking, tax sale, bankruptcy
Termination of lease via destruction - ANSWER✔✔-the property is damaged
Copyright ©Stuvia International BV 2010-2024 Page 2/6
