RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
What does Fee Simple mean? -
correct answer ✅'Fee' means the land can be inherited and
'simple' means the inheritance is unqualified as to who can inherit
it.
Bundle of rights include (x4) -
correct answer ✅Possession (to occupy and keep out others)
Control (to alter the property physically)
Enjoyment (no interference from others)
Disposition (to convey all or part to another)
leased fee or leased fee estate -
correct answer ✅A fee simple estate that is subject to a lease is
referred to as a leased fee or leased fee estate.
Is a license that grants permission to an individual or business to
use a property transferable or not? -
correct answer ✅No, If the property is sold, the licence is usually
terminated. A licence grants permission to an individual or business
to use a property for a specified purpose but does not grant
exclusive possession of the property. A licence does not create
interest in the property and cannot be transferred to a third party.
(different than a lease which is transferable)
,RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
The Statute of Frauds -
correct answer ✅sale or transfer of land must be signed by all
parties who will be bound
"You need to ensure all aspects of a leasing transaction (e.g. offers,
counteroffers) are completed in writing."
The Statute of Frauds is part of English common law and originated
over 350 years ago when it was enacted by the British Parliament.
The Statute of Frauds requires that certain contracts, such as those
involving the sale or transfer of land, be in writing and that such
contracts be signed by all of the parties who will be bound by that
contract.
The purpose of the Statute of Frauds is the prevention of injury
from fraudulent conduct. In general, written contracts are easier to
prove and enforce. In addition, they decrease the chance of future
litigation and give the parties the opportunity to review essential
terms and conditions of the contract before it is finalized.
a lease agreement must contain specific information, the lack of
which could render the agreement invalid. The required elements
,RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
are (x8) -
correct answer ✅1. Name of Lessor and Lessee
2. Description of the premises
3. Commencement and expiration dates
4. Consideration or the exchange of something of value
5. Renewal privilege (any renewal privilege should be spelled out in
detail)
6. Legal Purpose (describe the purpose for which the premises are
to be used)
7. Rules, regulations, policies, and procedures for each party
8. Signatures
, RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
Landlords and tenants also have some general rights and
obligations - landlord: -
correct answer ✅- Must fulfill their obligations as outlined by the
lease agreement
-Must notify tenants in writing of specific breaches of the lease and
allow a reasonable period of time for tenants to comply.
-May have the right to terminate a tenancy when the tenant fails to
fulfill its lease obligations as outlined in the lease
-Have the right to apply to the courts to seek damages fro the
tenant for the loss of rental income owed for the balance of the
term of a lease
Landlords and tenants also have some general rights and
obligations - Tenants -
correct answer ✅-Must fulfill their obligations as outlined by the
lease agreement
-Must pay rent to the landlord on the due date agreed to in the
lease
-Cannot withhold rent because the landlord has failed to fulfill its
lease obligations
-Have the right to take their disputes with the landlord to the courts
for disputes concerning money or personal property
Questions & Answers (Grade A+)
What does Fee Simple mean? -
correct answer ✅'Fee' means the land can be inherited and
'simple' means the inheritance is unqualified as to who can inherit
it.
Bundle of rights include (x4) -
correct answer ✅Possession (to occupy and keep out others)
Control (to alter the property physically)
Enjoyment (no interference from others)
Disposition (to convey all or part to another)
leased fee or leased fee estate -
correct answer ✅A fee simple estate that is subject to a lease is
referred to as a leased fee or leased fee estate.
Is a license that grants permission to an individual or business to
use a property transferable or not? -
correct answer ✅No, If the property is sold, the licence is usually
terminated. A licence grants permission to an individual or business
to use a property for a specified purpose but does not grant
exclusive possession of the property. A licence does not create
interest in the property and cannot be transferred to a third party.
(different than a lease which is transferable)
,RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
The Statute of Frauds -
correct answer ✅sale or transfer of land must be signed by all
parties who will be bound
"You need to ensure all aspects of a leasing transaction (e.g. offers,
counteroffers) are completed in writing."
The Statute of Frauds is part of English common law and originated
over 350 years ago when it was enacted by the British Parliament.
The Statute of Frauds requires that certain contracts, such as those
involving the sale or transfer of land, be in writing and that such
contracts be signed by all of the parties who will be bound by that
contract.
The purpose of the Statute of Frauds is the prevention of injury
from fraudulent conduct. In general, written contracts are easier to
prove and enforce. In addition, they decrease the chance of future
litigation and give the parties the opportunity to review essential
terms and conditions of the contract before it is finalized.
a lease agreement must contain specific information, the lack of
which could render the agreement invalid. The required elements
,RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
are (x8) -
correct answer ✅1. Name of Lessor and Lessee
2. Description of the premises
3. Commencement and expiration dates
4. Consideration or the exchange of something of value
5. Renewal privilege (any renewal privilege should be spelled out in
detail)
6. Legal Purpose (describe the purpose for which the premises are
to be used)
7. Rules, regulations, policies, and procedures for each party
8. Signatures
, RECA Commercial Unit3 Exam
Questions & Answers (Grade A+)
Landlords and tenants also have some general rights and
obligations - landlord: -
correct answer ✅- Must fulfill their obligations as outlined by the
lease agreement
-Must notify tenants in writing of specific breaches of the lease and
allow a reasonable period of time for tenants to comply.
-May have the right to terminate a tenancy when the tenant fails to
fulfill its lease obligations as outlined in the lease
-Have the right to apply to the courts to seek damages fro the
tenant for the loss of rental income owed for the balance of the
term of a lease
Landlords and tenants also have some general rights and
obligations - Tenants -
correct answer ✅-Must fulfill their obligations as outlined by the
lease agreement
-Must pay rent to the landlord on the due date agreed to in the
lease
-Cannot withhold rent because the landlord has failed to fulfill its
lease obligations
-Have the right to take their disputes with the landlord to the courts
for disputes concerning money or personal property
