Exam Questions and CORRECT Answers
- CORRECT ANSWER - A landlord and tenant relationship is created when the owner
gives the possession and use of their property to another for rent or other consideration
Landlord (lessor): the owner of the property being rented or leased
Tenant: the person(s) renting, or leasing the property
The landlord (or their agent) may lease:
1. Only the land 2. The land and it's buildings 3. Only the building(s)/parts of the building(s)
- CORRECT ANSWER - Lease: a contractor for a set time, typically one year or more
Rental agreement : has the same principles of a lease, but is typically made on a monthly basis,
and is renewable at the end of each period (week to week, month to month, any period to period
up to one year)
The landlord holds the revisionary right to a property meaning of the termination of the rental
agreement. The landlord has the right to take that possession of the property.
Hotels, motels, and other types of lodging are leases with a shorter duration, with daily or weekly
rentals, they have different rules for termination and evictions
- CORRECT ANSWER - A lease can be either oral or written, and requires no particular
language, though it must include (LAND):
1. L- length or duration of time.
2. A- amount of rent.
,3. N- names of the parties
4.D- description of the property
It is best to have all rental agreements in writing even leases that are less than one year which
technically don't need to be in writing
Under the statute of frauds, and Elise lasting longer than one year from the date of signing, must
be in writing and signed by the lessor
It is not necessary for the lessee to sign if the lease has been delivered to an excepted by the
lessee, meaning payment of rent and possession of the property is sufficient to bring them to the
terms
- CORRECT ANSWER - Credit scoring : the higher, your credit score the better your
chances of renting
Credit score (FICO Score): a 3 digit number assigned to consumers based on credit history that is
used by landlords to qualify tenants to rent their property
Fair Isaac Corporation was the 1st cup need to develop a mathematical credit scoring model
based on selected criteria
Fico scores range from 300 - 850, and a score over 720 qualifies for the best interest rate, but any
score under 650 is considered high risk
- CORRECT ANSWER - Bylaw it is a consumers right to receive a free credit report once
a year, and the three national credit report agencies are required to correct an accurate
information in a timely manner. I will be subjected to legal recourse, if the inaccuracies continue
to be reported after notified of the mistakes.
National credit report agencies :
1. Experian.-Experian/fair Isaac system; www.experian.com/consumer/index.html
, 2. Trans Union-empirica system; www.transunion.com
3. Equifax-beacon system; www.equifax.com
4. Fintech information; www.fintech.com
- CORRECT ANSWER - A leasehold is a personal property right in real property. It does
not have direct ownership of the real estate.
Chattel real : a personal property, estate such as a lease
Leasehold: an exclusive right to occupy and use a property on a temporary basis without any
ownership rights
Demise: a convenience of an estate in real property, such as a lease to someone for a certain
length of time
Revisionary interest : the owner holds the right to regain possession of the property at the end of
the lease hold period
Types of leaseholds: 1. Estate for years 2. Estate from period to period 3. Estate at will 4. Estate
at sufferance
- CORRECT ANSWER - Estate for years: an agreement made an advance between a
lessee and lessor for use of a property for a (predetermined) fixed period of time
A lease is a contractual agreement to possess and use a property for an agreed to period of time.
It must be in writing and signed by the lessor if the period is longer than one year.
The tenant is usually required to pay for proper screening application. It is a nonrefundable fee
up to $30.
Lessor: the owner sometimes referred to as the landlord