CRLS Lease Administration & Security Deposits Flashcards

What is an estoppel certificate in residential leasing?

Answer: A signed document in which a tenant certifies the lease terms and current status as accurate

An estoppel certificate is a tenant's written confirmation of lease terms, rent amount, and any disputes, often required by lenders or buyers during property transactions.

What is the difference between a lease assignment and a sublease?

Answer: In an assignment the original tenant transfers all rights to a new tenant; in a sublease the original tenant retains responsibility

An assignment transfers the tenant's entire interest to a new party, while a sublease creates a new tenancy beneath the original lease, keeping the original tenant liable.

Which clause in a lease agreement allows the landlord to increase rent during the lease term tied to an index?

Answer: Escalation clause

An escalation clause permits periodic rent increases based on a benchmark such as the Consumer Price Index (CPI) during the lease term.

What does a 'holdover tenancy' occur when?

Answer: A tenant remains in the property after the lease expires without signing a renewal

A holdover tenancy arises when a tenant stays past the lease expiration without a new agreement, often converting to a month-to-month tenancy at the landlord's discretion.

What is a lease addendum?

Answer: A written modification or addition to an existing lease agreement

A lease addendum is an attached document that modifies, adds to, or clarifies specific terms of the original lease without replacing it.

What must a landlord provide to a tenant when imposing an early termination fee under a lease?

Answer: Clear written disclosure of the fee amount and conditions in the lease agreement

Early termination fees must be clearly disclosed in writing within the lease so tenants understand the financial consequences before signing.