CRLS CRLS Lease Administration & Security Deposits 2 — Questions and Answers
Question 1: What is an estoppel certificate in residential leasing?
- A signed document in which a tenant certifies the lease terms and current status as accurate (Correct answer)
- A notice of rent increase issued by the landlord
- A form used to terminate a lease early
- A disclosure required during a property sale
Correct 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.
Question 2: What is the difference between a lease assignment and a sublease?
- In an assignment the original tenant transfers all rights to a new tenant; in a sublease the original tenant retains responsibility (Correct answer)
- In a sublease the landlord replaces the original tenant; in an assignment the tenant keeps their rights
- Assignment and sublease are legally identical terms
- Only assignments require landlord approval under the law
Correct 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.
Question 3: Which clause in a lease agreement allows the landlord to increase rent during the lease term tied to an index?
- Escalation clause (Correct answer)
- Hold-harmless clause
- Right of first refusal clause
- Subordination clause
Correct 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.
Question 4: What does a 'holdover tenancy' occur when?
- A tenant remains in the property after the lease expires without signing a renewal (Correct answer)
- A landlord holds the tenant's deposit beyond the legal return deadline
- A tenant vacates before the lease term ends
- A landlord refuses to renew a lease after it expires
Correct 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.
Question 5: What is a lease addendum?
- A written modification or addition to an existing lease agreement (Correct answer)
- A court order requiring a tenant to vacate the premises
- A document voiding the original lease entirely
- A landlord's notice of intent to sell the property
Correct 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.
Question 6: What must a landlord provide to a tenant when imposing an early termination fee under a lease?
- Clear written disclosure of the fee amount and conditions in the lease agreement (Correct answer)
- Verbal notice at least 24 hours before termination
- A court order authorizing the fee
- Only a receipt after the fee is collected
Correct 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.
CRLS CRLS Lease Administration & Security Deposits 2
What is an estoppel certificate in residential leasing?