Deck 14: Land-Use Controls and Property Development

Question 1

Property management contracts must be in writing.

Answer 1

False

Question 2

A lease is a type of conveyance.

Answer 2

True

Question 3

An option clause gives the tenant the right and the duty to take some action in the future.

Answer 3

False

Question 4

A property management fee is usually:

A) a percentage of the property's net income.
B) a percentage of the property's gross income.
C) set by state law.
D) a flat fee.

Question 5

Typically, a site manager (resident manager):

A) collects rent.
B) does minor repairs.
C) responds to tenant complaints.
D) all of the above.

Question 6

A lease that contains the phrase "jointly and severally liable" means that:

A) if there is more than one tenant, each may sever his or her interest from that of his or her roommate.
B) If there is more than one tenant, each may pay only his or her portion of the rent.
C) if there is more than one tenant, each tenant is liable for 100% of the rent.
D) the landlord can only accept one check for each month's rent, rather than separate checks from each tenant.

Question 7

If no provision is made in a lease and either the tenant or landlord dies:

A) the lease automatically terminates.
B) the lease may be terminated by the probate judge.
C) the tenant's or landlord's heirs must continue with the lease.
D) the lease automatically becomes month to month.

Question 8

Typically, in a lease, the landlord reserves the right to enter the premises for which of the following purposes?

A) To inspect the premises
B) To show the premises to prospective tenants
C) To make repairs
D) All of the above

Question 9

In the typical sublease situation, to whom does the sub-tenant pay rent?

A) To the tenant who gave him or her the sublet
B) To the landlord
C) To the property manager
D) To the on-site manager

Question 10

The process in which a landlord so disturbs a tenant's enjoyment of the leased premised that the tenant is effectively forced to move is called:

A) actual eviction.
B) forcible detainer and entry.
C) constructive eviction.
D) modification and obstruction.

Question 11

Retaliatory eviction is:

A) illegal.
B) legal if the tenant has caused a revolt among the other tenants.
C) legal if it is mentioned in the lease.
D) legal in some severe situations.

Question 12

A lease that specifies both the beginning and the expiration date of the lease is called:

A) periodic tenancy.
B) a net lease.
C) tenancy for years.
D) tenancy at will.

Question 13

The situation that occurs when a tenant is in possession of a property with the permission of the owner, but without any agreement as to the term of the lease or the rent amount is called:

A) tenancy for years.
B) tenancy at sufferance.
C) periodic tenancy.
D) tenancy at will.

Question 14

A lease that calls for a fixed rental payment at stipulated intervals is called:

A) a graduated lease.
B) a net lease.
C) a triple net lease.
D) a gross lease.

Question 15

The lease that allows the landlord to share in the profits of a commercial tenant is called:

A) a gross lease.
B) a percentage lease.
C) a net lease.
D) a graduated lease.

Question 16

Name three of the most important items that a property management contract should contain.

Question 17

Name three of the entities that are likely to have property managers on staff.

Question 18

Security deposits are given to offset a number of possible expenses that the landlord might encounter. Name two such expenses.

Question 19

What are "rent controls"?

Question 20

Name three of the classes of individuals that are protected by the federal government.

Question 21

You want to rent a space in a local mall for the purpose of opening a shoe store. The landlord wants a triple net combined with a percentage. What does he want? What would you negotiate for in terms of another rental amount?

Question 22

Why would anyone want to do a sale and leaseback?