Ian D. Toms

1. Which of the following costs are landlords able to charge as a component of additional rent?

a. dry-cleaning employees clothes
b. management fees calculated as a percentage of administration fees
c. can't tell because it depends on whether the lease is a net lease, a net net lease, or a triple net lease
d. all of the above are true

2. In a gross lease:

a. all occupancy costs are included in rent and paid monthly
b. some occupancy costs are included in the rent, and some are excluded from rent
c. the rent payable remains the same throughout the term
d. none of the above is always true

3. The phrase "brokers protected" shown on "for lease" signs means:

a. the landlord may pay a commission to a broker who introduces them to a tenant
b. approaching the landlord directly may obligate the landlord to pay a commission to his broker
c. a concession to tenant equal to commission is likely available for the asking through your real estate agent
d. the landlord has agreed to protect brokers by offering a competitive rent

4. "TMI" means:

a. the additional rent
b. the tax, maintenance and insurance components of additional rent
c. an undefined reference to additional rent
d. a defined reference to additional rent

5. Base rent is:

a. always more than additional rent
b. always less than additional rent
c. less than, equal to, or more than additional rent
d. often vaguely defined in the lease

6. Who of the following are legally able to represent a tenant in a lease negotiation:

a. either a realtor, a lawyer, or an experienced business person
b. an accountant
c. the tenant
d. all of the above

7. In a typical lease negotiation:

a. a professionals fees typically should be less than the amount of rent saved
b. a tenant representing themselves will save as much as the professional
c. by representing themselves in a negotiation, a tenant will save both rent and professional fees
d. none of the above are correct

8. Which of the following statements is true:

a. in Ontario, the term plus option period is often calculated in multiples of 5 years and should ideally equal the number of years of the expected tenancy
b. in Hawaii, Alaska and New England, $1 is a better rate than $12 psf GLA
c. GLA compared to NRA is often a function of additional rent
d. a corporate tenant is always preferred because the structure protects the tenant
e. a gross lease is a preferred format because it protects the tenant by fixing the rent at a reasonable rate
f. none of the above

9. Which element of a tenancy development is the most important:

a. site selection
b. lease amendment negotiation
c. lease negotiation
d. offer to lease negotiation
e. letter of intent negotiation

10. Which if the following is most true:

a. the offer to lease is the most important instrument negotiated during a new tenacy development
b. tenants more frequently overpay base rent than additional rent
c. ability for the tenant to assign the lease relieves the tenant from responsilility following overpayment throughout the term
d. none of the above

11. An agreement between two parties is sometimes referred to as an "indenture" because:

a. often one party is "dented" or taken advantage of
b. prior to photocopiers multiple copies of the same document were stacked together and cut along a margin in a specific pattern or indentation
c. the term is old English originating from indentured servant in a landlord - tenant context
d. none of the above

12. Term renewal option dates:

a. are the responsibility of the leasing manager
b. are a key component in effectively administering term renewals
c. are challenging to decipher in the lease
d. are not frequently encountered in renewal options

13. All items included, occupancy cost in office space is most often:

a. less than retail space for the same area
b. approximately the same for retail space
c. more than retail space for the same area
d. none of the above

14. A lease is most comparable to:

a. a will
b. a promissory note
c. a contract
d. an order of divorce

15. With respect to premises ownership versus leasing:

a. owning is always better than leasing because you end up with an asset when the mortgage is paid off
b. leasing is less costly than owning because rent is less expensive than mortgage payments
c. tax and administration implications are very important compared to the monthly financial terms
d. advantages and disadvantages are not possible to predict because the administration costs are intangible

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Lease Negotiation Skill Assessment Quiz