Real Estate Exam Flashcards: Leasing and Property Management

Question 1

What is constructive eviction?

Accepted Answer

Landlord's action/neglect makes the premises uninhabitable (no heat, flooding); the tenant may VACATE and terminate without further rent liability. Tenant must actually move out.

Question 2

A property manager's fee structure that best aligns with the owner?

Accepted Answer

Percentage of COLLECTED rent (not scheduled rent) — the manager earns more only when rent is actually collected and vacancies filled.

Question 3

ADA vs FHA — which covers the apartment, which covers the leasing office?

Accepted Answer

The APARTMENT (dwelling) = Fair Housing Act (accommodations/modifications). The LEASING OFFICE and other public spaces = ADA (barrier removal).

Question 4

What is a net lease?

Accepted Answer

A lease where the tenant pays base rent PLUS some or all of the property's operating expenses (taxes, insurance, maintenance). A gross lease bundles those into the rent.

Question 5

Is a lease terminated when the property is sold?

Accepted Answer

NO — the buyer takes title SUBJECT TO existing leases and becomes the new landlord on the same terms (deposits transfer too).

Question 6

What is an SNDA?

Accepted Answer

Subordination, Non-Disturbance & Attornment agreement: lease subordinates to the lender, lender won't disturb a performing tenant after foreclosure, tenant recognizes the new owner.

Question 7

Can a landlord deduct repainting after a 5-year tenancy from the deposit?

Accepted Answer

Generally NO — that's normal wear and tear. Deductions cover damage beyond normal use, unpaid rent, and lease-specified items, with itemization.

Question 8

Percentage lease: $3,000 base + 4% of sales over $900,000. Sales hit $1.4M — total rent?

Accepted Answer

Annual base $36,000 + 4% × $500,000 overage = $56,000.

Question 9

Which leasehold estate ends WITHOUT notice?

Accepted Answer

The estate for years (fixed term) — it expires by its own calendar. Periodic tenancies require proper notice to end.

Question 10

Sublease vs assignment — the one-line test?

Accepted Answer

Transfer the ENTIRE remaining term = assignment. Keep ANY part (time or space) = sublease. Original tenant stays liable in both unless released.

Question 11

In a NNN lease, the tenant pays which three nets?

Accepted Answer

Property Taxes, Insurance, and Maintenance (CAM) — on top of base rent. The landlord's rent is nearly pure net income.

Real Estate Exam Flashcards: Leasing and Property Management

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