Arkansas Real Estate License Leases and Property Management 1 — Questions and Answers
Question 1: A leasehold estate that runs for a definite, fixed period of time is called a:
- Estate for years (Correct answer)
- Periodic tenancy
- Tenancy at will
- Tenancy at sufferance
Correct answer: Estate for years
An estate for years is a leasehold with a fixed start and end date, regardless of whether the term is days or decades.
Question 2: A month-to-month rental agreement is an example of which type of tenancy?
- Periodic tenancy (Correct answer)
- Estate for years
- Tenancy at will
- Tenancy at sufferance
Correct answer: Periodic tenancy
A periodic tenancy automatically renews for successive periods until either party gives proper notice to terminate.
Question 3: In Arkansas, what is the minimum notice required to terminate a month-to-month tenancy?
- 30 days written notice (Correct answer)
- 7 days written notice
- 60 days written notice
- 10 days written notice
Correct answer: 30 days written notice
Arkansas law requires at least 30 days written notice to terminate a month-to-month tenancy.
Question 4: A tenant who remains in possession of a property after the lease expires without the landlord's consent is known as:
- A holdover tenant or tenant at sufferance (Correct answer)
- A tenant at will
- A periodic tenant
- A trespasser with occupancy rights
Correct answer: A holdover tenant or tenant at sufferance
A tenant at sufferance holds over after lease expiration without permission, creating a situation the landlord can treat as trespass or a new tenancy.
Question 5: Which of the following best describes a gross lease?
- The tenant pays a flat rent and the landlord pays all operating expenses (Correct answer)
- The tenant pays base rent plus a share of operating expenses
- The tenant pays rent plus a percentage of business revenue
- The tenant pays all property taxes and insurance
Correct answer: The tenant pays a flat rent and the landlord pays all operating expenses
In a gross lease, the tenant pays one fixed rent amount and the landlord is responsible for all operating expenses such as taxes, insurance, and maintenance.
Question 6: A net lease in commercial real estate requires the tenant to pay:
- Base rent plus some or all of the property's operating expenses (Correct answer)
- Only a fixed monthly amount with no additional costs
- A percentage of their gross sales in addition to rent
- Rent based solely on the property's appraised value
Correct answer: Base rent plus some or all of the property's operating expenses
In a net lease, the tenant pays base rent plus designated operating expenses such as property taxes, insurance, and/or maintenance.
Arkansas Real Estate License Leases and Property Management 1
A leasehold estate that runs for a definite, fixed period of time is called a: