Illinois Real Estate Leasing Agent Exam Flashcards

Illinois Real Estate Leasing Agent Exam Flashcards Index leaseAllows rent to increase or decrease periodically based on changes in consumer price index or different economic indicator Illinois Security Deposit Annual Interest conditionsLandlords are required to pay this interest of units in properties of 25 units or more on deposits held for more than 6 months The CAN-SPAM ActA federal law that placed guidelines on mass commercial

emails. Requires:1. No false/misleading header

information2. No deceptive subject lines3. Recipients must be able to opt-out4. Must be identified as an advertisement

A lease must:1. Establish the length of time the contract runs2. List the

amount the lessee pays3. State other rights and obligations of the parties Attachmentpersonal property that turns into real property Bilateral ContractBoth parties promise to do something (real estate is bilateral) OptionGrants the lessee the privilege of renewing the lease (renewal option) Price FixingPractice of setting prices for products or services rather than letting competition in open market establish the prices The Duty of LoyaltyThe principal's interests come first ConsumerPerson or entity seeking/receiving licensed activities The Duty of ObedienceFiduciary relationship obligates the agent to act in good faith at all times, obeying the principal's instructions in contract Offer of a Contract1. Must be an offer by one party that's accepted by the

other (offeror and offeree)2. Mutual assent: meeting of the

minds; complete agreement of the purpose and terms3.Any offer or counteroffer may be withdrawn before acceptance Unforceable ContractMay seem valid, however neither party can sue the other to force performance (ex. not in writing or ambiguous) Nondisturbance clauseA mortgage clause stating that in the event that the mortgage forecloses on a mortgage-lessor's building, the mortgagee agrees to not terminate the tenancies of lessees who pay rent Graduated leaseSpecified rent increases at set future dates Executory ContractOne or both parties still have an act to perform (sales contract) Estate from Period to PeriodWhen a landlord and tenant enter into an agreement for an

indefinite period of time. For specific payment periods:-

Month to month- Week to week- Year to yearContinued until notice of termination is given

SeveranceWhen real property turns into personal property (ex: if an

owner cuts a tree down on his/her property. The tree is now personal property because it's not attached to the land) Percentage LeaseLessee pays basic rent plus a percentage of gross sales (may pay property charges) generated by tenant doing business on leased property Group BoycottingOccurs when 2 or more businesses conspire against another business, or agree to withhold their patronage, in order to reduce competition Acceptance of a Contract1. Not considered accepted until offeror has been notified of the other party's acceptance2. Must be immediate with offers, acceptances, or other responses to avoid problems, delays, or possible charges.Notice of Termination of Estates from Period to PeriodYear to year: at least 60 days written notice within the 4 month period before the last 60 days of leasing

periodMonth to month: 30 days written noticeWeek to

week: 7 days written notice

Breach of Lease; Landlord may sue tenant for: 1. Post-due rent2. Damages3. Other defaults Anti-Trust LawsThese laws prohibit monopolies and any contracts, combinations, and conspiracies that unreasonably restrain trade FiduciaryOne who is placed in a position of trust and confidence Express contractWhen parties state the terms and show their intentions in words (oral or written) General agencyRelationship between broker/managing broker/leasing agent and the sponsoring broker FixturePersonal property that has been affixed to a building and

becomes real property by law (ex: heating, elevators,

radiators, kitchen cabinets, lights, doors, plumbing, etc.) Memorandum of LeaseGives notice of interest but doesn't disclose the terms of the lease Net LeaseLessee pays basic rent plus all/some property charges Sale & Lease Back AgreementOwners of a property sell the place and lease it back again for an agreed period Lease purchaseTenant wants to purchase property but is unable to do so because of insufficient finances, not having a clear title, or having tax consequences.Consideration of a Contract1. Something of legal value offered by one party and accepted by another as an inducement to perform/refrain from performing some act Voidable contractAppears to be valid but may be rescinded or disaffirmed by one or both parties based on some legal principle Gross LeaseLessee pays basic rent AssignmentSubstitution of parties; the transfer of rights/duties under a contract

Accessibility through Federal Fair Housing Act Illegal to discriminate against prospective tenants based on physical disabilities Actual EvictionThe legal process that results in the tenant's being physically removed from the leased premises.- Landlord must serve a notice before suing- Landlord must file a forcible entry and detainer action Referral FeesLandlords can pay a referral fee to tenants if the tenant finds a prospective tenant for a unit in the same

building/complex IF:- Tenant refers no more than 3 people

in a 12 month period- Receives compensation of no more than $1500 or equivalent to monthly rent (whichever is less)- Doesn't do showings, discuss lease terms, or participates in negotiations Legal Purpose of a ContractMust be for a legal purpose (nothing illegal) Law of AgencyDefines rights and duties of the principal and the agent ClientPerson being represented by licensee Sale ClauseRequires that the tenants be given some period of notice before termination by new landlord CompensationValuable consideration given by one person/entity to another in exchange for the performance of some activity/service AgencyStrict, defined legal relationship Reality of Consent of a ContractContract must be entered into as free and voluntary for both parties Plants that fall under "Personal Property" Annually cultivated crops (emblements) Postformation of Contracts Discharges1. Performance2. Breach3. Remedies (damages, specific performance, recission)

The Duty of Care: If the Agent represents the buyer, this

includes:

• Help buyer locate suitable properties- Evaluate the

property values, neighborhoods, and property conditions- Financing alternatives and offers/counteroffers with buyer's interest in mind Lease AssignmentTenant transfers all leasehold interests to another person (new tenant is legally obligated for all promises that the original tenant made in the lease) Estate at WillTenant has right to possess property with the landlord's consent for unspecified term.- Continues until either party gives notice of termination- Death of landlord or sale of property may terminate this PrincipalClient to whom the agent gives advise and counsel Estate for YearsA leasehold estate that continues for a definite period of time (Ex. specific beginning and ending dates) Recording a LeaseLeases of 3 years or more are usually recorded (some states require it) Executed ContractAll parties have fulfilled their promises (the contract has been performed)