CRLS CRLS Lease Administration & Security Deposits 2

Question 1

What is an estoppel certificate in residential leasing?

Accepted Answer

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

Answer

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?

Accepted Answer

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

Answer

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?

Accepted Answer

Escalation clause

Answer

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?

Accepted Answer

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

Answer

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?

Accepted Answer

A written modification or addition to an existing lease agreement

Answer

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

CRLS - Certified Residential Leasing Specialist Practice Test

CRLS - Certified Residential Leasing Specialist Practice Test

CRLS CRLS Lease Administration & Security Deposits 2