Chapter 11 Landlord and Tenant

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  1. Lease
    covers the conditions upon which a tenant may possess, occupy, and use the property
  2. Residential Rental Agreements Act
    Ensures that only habitable residential units are rented. Implied warranty of habitability - to supply fit and habitable premises to the tenant.
  3. Constructive Eviction
    Gives the tenant the ability to leave the premises without penalty if the landlord doesn't keep it habitable.
  4. Law of Negligence
    The landlord is liable for injuries that occur in common areas when they have negligently failed to maintain safe conditions.
  5. Tenant's Statutory Duties
    Maintain the dwelling unit; clean and safe, take responsibility for any damages to property. Not withhold rent without court order.
  6. Summary Ejection
    The legal process of eviction in NC.
  7. Tenants of a foreclosure
    If lease was in place before foreclosure, the tenant may remain until end of lease period.  However, if new owner wants to use it as primary dwelling, the tenant is entitled to 90 days notice to vacate premises.
  8. Bona fide lease
    The tenant is not the mortgagor or the child, spouse, or parent of the mortgager; the lease is an arms-length transaction; the rent cannot be substantially less than fair market value.
  9. Tenant Security Deposit Act
    Regulates the amount of money that can be required as a security deposit and what the landlord can do with the deposit.
  10. Security Deposit Amounts
    Week to week -
    Month to month -
    Longer than month to month -
    2 weeks rent, one and one-half months' rent, two months' rent
  11. What can the landlord do with the security deposit?
    Place it in a trust account or obtain a bond as a guarantee for the deposit.  If a real estate agent is handling the deposit, they must put it in a trust account.
  12. Security deposit must be returned upon termination of the lease within ____ days
  13. Use of the security deposit
    Reimburse the landlord for non-payment, damage to the property other than ordinary wear and tear, nonfulfillment of the rental period, unpaid bills that may create a lien on the property, cost of removing and storing tenant's property, cost of re-renting after a breach, court costs in connection with an eviction action.
  14. Rights of tenants in public housing
    Cannot be evicted unless there is good cause, tenants entitled to procedural due process before they can be evicted.
  15. North Carolina Vacation Rental Act
    Establishes rules in the handling of short-term rentals under 90 days in length where the tenant has a primary residence elsewhere.  Vacation property manager must be a licensed real estate broker.
  16. Leasehold Estate
    The tenant's right to occupy the land for the duration of the lease
  17. Estate for Years
    a leasehold estate that continues for a definite period of time, whether for years, months, weeks, or even days, is an estate for years.  Automatically terminates at the end of the lease period
  18. Estate from Period to Period
    When the landlord and tenant enter into an agreement that continues for a specific period, being automatically renewed for an indefinite time without a specific end date.
  19. Time frame for notice of termination of an estate from period to period
    • week-to-week = 2 days
    • month-to-month = 7 days
    • year-to-year = one month
  20. Holdover tenant
    a tenant that doesn't leave at the end of a lease term.
  21. Estate at Will
    Indefinite term, possession with landlord's consent.
  22. Estate at Sufferance
    Tenant's previously lawful possession continued without landlord's consent.
  23. Fixed Rental Lease
    Residential Leases, tenant pays a fixed amount of rent but none of the property charges
  24. Percentage Lease
    Tenant pays a percentage of the gross or net income as rent
  25. Net Lease
    Tenant pays rent plus all or some of the property charges
  26. Graduated Lease
    Tenant pays rent, which increases at predetermined dates
  27. Ground Lease
    Tenant pays rent on land and builds on it.  Usually run for 99 years or longer
  28. Oil and mineral lease
    Oil companies lease land to explore for oil, gas, and other minerals
  29. Full-Service Lease
    Commercial leases where tenants share in overall operating expenses for the common areas and the building.
  30. Four Essential Provisions for a Valid Lease
    Mutual Agreement, Consideration, Capacity to contract, Legal objectives.
  31. Subleases
    When a tenant transfers their interest to a third party.  The original tenant retains secondary liability for paying the rent unless the original tenant is granted a novation.
  32. Covenant of Quiet Enjoyment
    The landlord has no right to enter the leased premises unless the lease specifically gives them permission.
  33. Termination of Leases 4
    Mutually agree, lease term expires, operation of law, if one party fails to perform a material obligation.  Lease does not terminate when owner dies or property is sold.
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Chapter 11 Landlord and Tenant
2013-11-07 01:13:40
NC Real Estate Exam

Modern Real Estate Practice in NC 8th Edition
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