MA Salesperson Leases Module 7 Exam

Leases - Correct Ans--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 - Correct Ans-a legal relationship between two people with interests in the same property the longest lease can last - Correct Ans-99 years leases longer than 7 years - Correct Ans-must be recorded in the state or MA Leases are - Correct Ans-non-freehold interests revisionary interest - Correct Ans-right to regain possession after the lease is over usable square footage - Correct Ans-the actual square footage the lessee can occupy within the walls of the leased premises and is responsible for rentable square footage - Correct Ans-the leased premises plus a percentage of any common areas maintained by the lessor and used by the lessee additional square footage - Correct Ans-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 - Correct Ans-based on annual price per square foot build out - Correct Ans-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 - Correct Ans-with the land Certificate of No defense - Correct Ans-or estoppel certificate, used to confirm the lease when the property is sold doctrine of estoppel - Correct Ans-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 - Correct Ans-the act of transferring a portion of one's rental interest to a third party assigning - Correct Ans-the transfer of all the remaining interest to a third party novation - Correct Ans-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 - Correct Ans-leases automatically terminate at the end of their term Termination of lease via surrender - Correct Ans-cancellation of the lease prior to expiration Termination of lease via action of law - Correct Ans-eminent domain taking, tax sale, bankruptcy Termination of lease via destruction - Correct Ans-the property is damaged