Real Estate Investing Landlord and Tenant Law 4

Question 1

A property is sold while tenants are living under a fixed-term lease. What happens to the lease?

Accepted Answer

The new owner takes the property subject to the existing lease

Answer

Under the 'sale does not break lease' doctrine, a fixed-term lease survives a property sale and binds the new owner.

Question 2

What is the legal concept of 'joint and several liability' in the context of co-tenants on a lease?

Accepted Answer

Each co-tenant can be held fully responsible for the entire rent obligation

Answer

Joint and several liability means the landlord can pursue any one co-tenant for the full amount of rent owed, regardless of internal agreements among tenants.

Question 3

A city with rent control passes an ordinance capping annual rent increases at 3%. A landlord's mortgage costs increase by 8%. The landlord can legally:

Accepted Answer

Petition for a hardship exemption if costs exceed the cap

Answer

Most rent control ordinances include a hardship petition process allowing landlords to seek additional increases when operating costs significantly exceed the standard cap.

Question 4

Under the federal SCRA (Servicemembers Civil Relief Act), a military tenant who receives deployment orders can:

Accepted Answer

Terminate a lease with 30 days' written notice and a copy of deployment orders

Answer

The SCRA allows active-duty servicemembers to terminate a lease by providing written notice and a copy of military orders for deployment of 90+ days.

Question 5

Which of the following best describes a 'holdover tenant'?

Accepted Answer

A tenant who remains in possession after the lease expires

Answer

A holdover tenant continues to occupy a property after the lease term ends without the landlord's express consent to renew.

Real Estate Investing Practice Test

Real Estate Investing Practice Test

Real Estate Investing Landlord and Tenant Law 4