Real Estate Investing Landlord and Tenant Law 5 β Questions and Answers
Question 1: A landlord wants to convert a rent-controlled apartment building to condominiums. Under most local ordinances, this requires:
- No special permission if the landlord owns the building outright
- A conversion permit and often relocation assistance for displaced tenants (Correct answer)
- Only 30 days' notice to tenants
- Approval only from the mortgage lender
Correct answer: A conversion permit and often relocation assistance for displaced tenants
Condo conversions typically require a conversion permit from the local government and may mandate relocation assistance or right-of-first-purchase for existing tenants.
Question 2: Which clause in a commercial lease makes the tenant responsible for paying property taxes, insurance, and maintenance in addition to base rent?
- Gross lease clause
- Triple net (NNN) clause (Correct answer)
- Percentage rent clause
- Subordination clause
Correct answer: Triple net (NNN) clause
A triple net (NNN) lease requires the tenant to pay base rent plus property taxes, building insurance, and maintenance costs.
Question 3: A tenant's lease contains an 'automatic renewal clause' that renews for another year unless written notice is given 60 days before expiration. The tenant forgets to give notice. What is the result?
- The lease converts to month-to-month automatically
- The lease renews for another full year (Correct answer)
- The tenant can vacate without penalty since they forgot
- The landlord must accept 30 days' notice instead
Correct answer: The lease renews for another full year
An automatic renewal clause legally binds the tenant to another full term if the required advance notice is not given by the deadline.
Question 4: Under the Violence Against Women Act (VAWA), a landlord receiving federal housing assistance must:
- Evict domestic violence victims who disturb other tenants
- Allow domestic violence victims to terminate leases early without penalty (Correct answer)
- Notify police of all domestic violence incidents
- Require victims to relocate within the same building
Correct answer: Allow domestic violence victims to terminate leases early without penalty
VAWA protects victims of domestic violence in federally assisted housing, including the right to terminate leases early without penalty to escape abuse.
Question 5: A tenant damages the rental property beyond normal wear and tear. Which of the following is an example of 'normal wear and tear' that a landlord cannot deduct from the security deposit?
- Large holes punched in the drywall
- Faded paint from sunlight exposure (Correct answer)
- Pet stains on the carpet
- Broken window from tenant negligence
Correct answer: Faded paint from sunlight exposure
Faded paint from normal sunlight exposure is considered normal wear and tear and cannot be charged to the tenant upon move-out.
Question 6: A landlord's 'no-pet' policy prohibits animals. A tenant requests permission to keep an emotional support animal (ESA). Under the Fair Housing Act, the landlord must:
- Deny the request since the no-pet policy applies to all
- Grant the accommodation unless it poses an undue hardship or direct threat (Correct answer)
- Charge an additional pet deposit for the ESA
- Only allow ESAs if a veterinarian approves the animal
Correct answer: Grant the accommodation unless it poses an undue hardship or direct threat
Emotional support animals are considered reasonable accommodations under the FHA, and landlords must grant the request unless it creates an undue burden or legitimate safety threat.
Question 7: What is the legal effect of a 'subordination, non-disturbance, and attornment' (SNDA) agreement in a commercial tenancy?
- It terminates the lease if the property is foreclosed upon
- It protects the tenant's lease rights in the event of lender foreclosure (Correct answer)
- It allows the landlord to raise rent when a new lender is involved
- It subordinates the tenant's rent obligation to the mortgage payment
Correct answer: It protects the tenant's lease rights in the event of lender foreclosure
An SNDA agreement ensures that if the lender forecloses, the tenant's lease is honored (non-disturbance) in exchange for the tenant recognizing the lender's priority (subordination) and the new owner as landlord (attornment).
Real Estate Investing Landlord and Tenant Law 5
A landlord wants to convert a rent-controlled apartment building to condominiums.
Under most local ordinances, this requires: