What is the exam-ready answer?
| Roadmap lesson | 88 of 500 |
|---|---|
| Official syllabus topic | Leases and Leasehold Estates |
| Official PSI area | Contracts |
| Published area weight | 19% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Leasehold estates
Classify by duration and termination method. Despite its name, an estate for years can last any definite period, including days or months.
Lease terms
A lease addresses premises, duration, rent, deposits, maintenance, repairs, utilities, permitted use, entry, insurance, default, renewal, and surrender.
Assignment and sublease
An assignment transfers the tenant's remaining leasehold interest, while a sublease transfers less than the full remaining interest. Original-party liability depends on consent, release, and law.
Property types
Residential, commercial, percentage, ground, net, and gross leases allocate rent and operating costs differently. Federal and state rules can add mandatory protections.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A tenant with ten months left transfers the entire remaining term to a new occupant but receives no release from the landlord.
Reason it through. The tenant transferred all remaining leasehold time, which is an assignment, but no fact releases the original tenant.
Answer. It is an assignment, and the original tenant may remain liable.
Common exam traps
- Assuming estate for years must last years
- Calling every transfer a sublease
- Assuming assignment releases the tenant
- Confusing possession with title
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Which tenancy has a fixed ending date?
- A. Estate for years
- B. Periodic tenancy
- C. Tenancy at sufferance
- D. Tenancy at will only
Show answer and explanation →
Answer: A. Estate for years
An estate for years ends on a definite date without requiring periodic renewal.
Question 2What arises when a tenant wrongfully holds over?
- A. Tenancy at sufferance
- B. Life estate
- C. Easement
- D. Joint tenancy
Show answer and explanation →
Answer: A. Tenancy at sufferance
A holdover after lawful possession ends is a tenancy at sufferance.
Question 3A transfer of less than the full remaining lease term is generally what?
- A. Assignment
- B. Sublease
- C. Novation
- D. Deed
Show answer and explanation →
Answer: B. Sublease
The original tenant retains a reversionary leasehold interest, making the transfer a sublease.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Agency relationships and fiduciary duties. Lesson 89 connects every relationship, duty, conflict, and termination rule.
Return to the Contracts hub to see every official branch and the complete lesson sequence for this content area.