NY Real Estate Exam: Review Questions & Answer: Guaranteed A+ Score Guide : Updated

A lease that provides for the lessee to pay all or part of the expenses of the property in addition to rent is called a(n): a. estate at sufferance b. net lease c. sale and leaseback d. gross lease (Ans- B: In a net lease, the tenant pays some or all of the expenses. When a lessee transfers the entire remaining interest of his lease to another party who then must pay the owner, is called a(n): a. novation b. sublease c. assignment d. lis pendens (Ans- C: The assignment of the lease involves the transfer of the lease contract from the present tenant to the assignee.A contract transferring the rights to possession of real property for a specified term is known as a a. lis pendens. b. Lien. c. Lease. d. Deed on condition. (Ans- C: A lease is a contract, in which, for a consideration, an owner of property transfers a property interest to the tenant for a prescribed period of time. Under the New York General Obligations Law, Security deposits by a tenant a. Become the property of the landlord. b. Are held in escrow by the landlord. c. May be commingled with the landlord's funds. d. Can be retained by the landlord after he or she sells the property. (Ans- B: The security deposit must be held in an escrow account. -A tenant learns her building has been sold to a new landlord. The sale of the propertya. Automatically terminates all preexisting leases. b. Automatically renews the lease for an additional term, although the tenant has the option of declining the renewal. c. has no effect on existing leases, and the tenant must make timely rent payments to the new owner. d. terminates the lease, but the tenant is entitled to a legal holdover tenancy for the remainder of the lease term. (Ans- C: Lease agreement does not terminate when an owner sells, new owner is bound by terms of lease