Conditions the landlord fails to fix that make the premises unusable
Nobody is physically put out. The premises are made unfit — heat left off, water cut, a defect left unrepaired — and the tenant vacates and treats the lease as ended. The tenant must actually leave; staying and complaining is not constructive eviction.
Easily confused with
Actual eviction is the landlord physically excluding the tenant. Constructive eviction is the tenant leaving because the landlord made staying impossible.
How the exam asks about it
Two elements carry it: the landlord’s failure caused the condition, and the tenant left because of it. Drop either one and the answer changes.
A lease with rent that steps up at points fixed in advance
The increases are written into the lease as stated amounts on stated dates rather than left to later negotiation. It suits a new business that expects to be able to pay more later and a landlord who wants the tenant now.
How the exam asks about it
Distinguished from an index lease, where rent moves with a published index instead of a schedule agreed at signing.
A lease in which the landlord pays the operating expenses out of the rent
The tenant pays one figure and the landlord absorbs taxes, insurance and maintenance from it. Residential leases are almost always gross, which is why the arrangement feels invisible until a commercial lease offers the alternative.
Easily confused with
A net lease moves some or all of those expenses onto the tenant, and the rent quoted is lower to match. Comparing the two by quoted rent alone is the mistake the item is testing.
How the exam asks about it
Identify it by what the tenant does not pay. A single rent covering everything is a gross lease, whatever else the item describes.
A long-term lease of land on which the tenant builds
The tenant owns the improvements for the term while the landlord keeps the land, and at expiry the improvements usually revert with it. Terms run for decades for a practical reason: nobody finances a building on land they hold for five years.
How the exam asks about it
Also called a land lease. The examinable feature is the split between ownership of the land and ownership of what stands on it.
A tenant who stays on after the lease term has ended
Possession without a current agreement. If the landlord accepts rent the tenancy commonly becomes periodic; if the landlord refuses it, the tenant holds an estate at sufferance and can be removed.
What accepting rent creates, and the procedure for removing a holdover, are set by state landlord–tenant law and differ from state to state.
How the exam asks about it
The fork is the landlord’s response, not the tenant’s intention. Accepting rent converts the holdover into a periodic tenancy; refusing it leaves an estate at sufferance.
A lease in which the tenant pays operating expenses on top of rent
Which expenses depends on how many "nets" the lease carries — commonly taxes, insurance and maintenance, singly or in combination. Commercial and industrial space is normally let this way, and the headline rent means little until you know what sits outside it.
How many nets a lease carries and what each one covers are matters of the individual document, not of a national rule. The label is a shorthand, not a definition.
How the exam asks about it
The examinable point is that the rent figure alone does not tell you the tenant’s cost. Leases are compared on total outlay, not on quoted rent.
A lease where rent includes a share of the tenant’s gross sales
Usually a modest base rent plus a percentage of sales above a stated breakpoint. Retail landlords use it to take a share of the traffic the location generates, which ties the landlord’s return to the tenant’s trade in a way a flat rent never does.
How the exam asks about it
Compute the base rent first, then apply the percentage only to sales above the breakpoint. Applying it to total sales is the standard arithmetic trap.
The tenant’s right to possess the premises without interference by the landlord
Implied in every lease whether it is written in or not. It protects possession rather than silence — "quiet" is old vocabulary for undisturbed holding, and a noisy neighbor is not what the covenant addresses.
Easily confused with
The same covenant appears in a general warranty deed, where the grantor promises the grantee that no better claim to the title will surface.
How the exam asks about it
The covenant belongs to the landlord, and it is breached by the landlord’s own acts or by someone with a superior claim to the property — not by a third party the landlord does not control.
Independent exam preparation. Real Estate Exam Bank is not a state-approved pre-licensing course and completing anything here does not satisfy any state education requirement. Not affiliated with, endorsed by, or authorized by any state real estate commission, Pearson VUE, or PSI. Practice questions here are original study material, not the official exam.