National Real Estate Exam: Leases and Property Management-Questions and Answers | 100% Correct | Latest Update 2024

National Real Estate Exam: Leases and Property Management-Questions and Answers | 100% Correct | Latest Update 2024 Lease - Answer ️️ -Transfers possession, giving tenant right to exclusive possession of property against all other parties. Both a conveyance and contract. Lease Conveyance - Answer ️️ -It conveys a leasehold estate to a tenant Lease Contract - Answer ️️ -Gives tenant right to exclusive possession including landlord. Quiet Enjoyment - Answer ️️ -use of the property without interference from the landlord. Lease should contain: - Answer ️️ -- Identify parties in lease - Describe property - Specify lease term - Lease start date - Duration or termination date - Rights and duties of lessor and lessee - Amount of rental payment - Acts which may cause termination Upon death of lessee... - Answer ️️ -- his interest will pass to his estate Upon sale of leased property... - Answer ️️ -Lease is binding on the new owner. Gross Lease - Answer ️️ -Rent is gross income to Landlord. Landlord pays operating and maintenance expenses of property, as well as property insurance premiums and taxes. Used primarily for residential property. Net Lease - Answer ️️ -Rent is net income to Landloard as tenant pays the rent, as well as some or all of the property expenses, property taxes, and property insurance premiums separately. Most nonresidential leases are net leases as well as sell-leasebacks. Flat (or fixed or straight) lease - Answer ️️ -Fixed rental amount is paid periodically throughout term of the lease. Generally used for long-term leases. Graduated lease - Answer ️️ -Rent will increase at regular specified intervals. Index (or escalation) lease - Answer ️️ -contain an escalator clause that allows the landlord to increase the rent to compensate for inflation and rising operating costs. Percentage lease - Answer ️️ -Rent is totally or in part a percentage of tenant's gross business income. Ground Lease - Answer ️️ -Tenant leases land only and owns improvements on the land. Periodic tenancy Termination - Answer ️️ -Can be terminated with proper notice. Estate for years termination - Answer ️️ -Without notice on expiration date. Leases may also be terminated by: - Answer ️️ --mutual consent of lessor and lessee - condemnation or destruction of property - release or merger of leasehold and fee estates - default of terms and conditions such as committing waste or willful destruction. What does NOT terminate lease - Answer ️️ -- abandonment by tenant - death of landlord or tenant - sale of property Eviction - Answer ️️ -process by which tenant is deprived of possession, use, and enjoyment pf property. Actual eviction - Answer ️️ -involves court enforced order to remove lessee Constructive eviction - Answer ️️ -tenant forced to move out because of poor condition of premises Property Management - Answer ️️ -acts as a fiduciary (agent) of the owner. Goal is to rent or lease space at rate which will produce a return sufficient to pay operating expenses and fixed expenses and provide return on own