Contract Negotiation & Documentation Flashcards

A tenant asks to strike the 'no pets' clause and the landlord agrees verbally, but the signed lease still contains the clause. What is the best practice for the leasing agent?

Answer: Prepare a written, signed addendum or amendment modifying the clause

Changes to a written lease should be documented in a signed addendum to avoid disputes and parol evidence issues.

Under the Statute of Frauds in most U.S. states, which lease generally must be in writing to be enforceable?

Answer: A lease for a term longer than one year

Most states require leases exceeding one year to be in writing under the Statute of Frauds.

A landlord offers one month free on a 12-month lease. How should this concession be documented?

Answer: State the concession, its terms, and any recapture conditions in the lease or a concession addendum

Documenting concessions and recapture terms in writing prevents disputes if the tenant breaks the lease early.

Which element is NOT required for a valid residential lease contract?

Answer: Notarization of both signatures

Residential leases generally do not need notarization to be valid.

When negotiating a lease renewal, a tenant requests a rent freeze in exchange for a longer term. This is an example of:

Answer: A trade-off concession

Exchanging one benefit (longer term) for another (stable rent) is a classic negotiated trade-off.

Federal law requires a lead-based paint disclosure for which residential leases?

Answer: Housing built before 1978, with limited exemptions

The Residential Lead-Based Paint Hazard Reduction Act applies to most pre-1978 housing.

A lease contains a clause that waives the landlord's duty to maintain habitable premises. In most states this clause is:

Answer: Void as against public policy

The implied warranty of habitability generally cannot be waived by lease terms.