CHAPTER 17 - LEASES AND PROPERTY MANAGEMENT

1. A in turn leases the land to a sublessee. Who holds the sandwich lease? landowner leases his land to a lessee, who A. landowner B. lessee C. sublessee D. lessor -ANSWER- B 2. Jones leases a building. An earthquake destroys it. Usually: A. the lease is no longer enforceable. B. Jones needn't pay rent until the building is rebuilt. C. Jones must rebuild the building, but may deduct the cost from rent. D. Jones must continue to pay rent until the lease expires. -ANSWER- A 3. When a leased property is sold, the sale has the following effect on the tenants: A. Tenant must record lease in recorder's office. B. Tenant must obtain assignment from the purchaser. C. No effect. D. Tenant must move out after 30 days' notice. -ANSWER- C 4. Tim has a five-year lease on a store building which called for the landlord to provide maintenance on the property. Although he notified the landlord on several occasions of a badly leaking roof, the landlord failed to make the necessary repairs. At his option, Tim could: A. stop paying rent until the roof was repaired. B. terminate the lease by claiming constructive eviction. C. get an injunction against the landlord. D. vacate the property without notifying the landlord. -ANSWER- B A lease that allows for annual rent to increase on each anniversary is a A. graduated lease. B. gross lease. C. percentage lease. D. net lease. -ANSWER- A 6. A property manager may NOT be compensated by receiving: A. a percentage of the gross. B. a fee for leasing. C. a fee for supervising repairs. D. rebates from suppliers. -ANSWER- D