Certified Residential Appraiser Practice Exam

What distinguishes a periodic estate or tenancy?

1. Fixed term lease with specific end date.

2. Duration can vary with a notice period to end.

3. No notice is required for termination.

4. Only paid monthly without an agreement.

The correct answer is: Duration can vary with a notice period to end.

A periodic estate or tenancy is characterized by its flexible duration, which is usually defined by the payment schedule, such as weekly, monthly, or yearly. This type of tenancy automatically renews at the end of each period until either party provides notice to terminate the agreement. The correct answer highlights that the duration of a periodic estate can vary and is contingent on a notice period to end, which is a key feature that allows for ongoing occupancy without a fixed end date unless a termination notice is given. In contrast, a fixed-term lease with a specific end date defines a tenancy that does not have the inherent flexibility of a periodic tenancy and automatically terminates at the end of the specified term without renewal. Similarly, stating that no notice is required for termination or that it is only paid monthly without an agreement fails to capture the essence of what makes a periodic tenancy distinct, as both imply different structures of agreements or requirements for termination. Thus, the correct identification of the periodic estate encompasses the necessary aspect of giving notice, encapsulating its defining characteristics.