Leasing License Practice Exam

What type of lease does not have a defined ending date?

1. Fixed-term lease

2. Month-to-month lease

3. Periodic tenancy

4. Tenancy at will

The correct answer is: Periodic tenancy

A periodic tenancy is defined by its characteristic of renewing automatically at the end of each period (which can be weekly, monthly, etc.) without a specific end date set in the lease agreement. This type of arrangement continues until either party provides notice to terminate the lease, which is generally defined by the length of the rental period. For example, if the tenancy is monthly, either the landlord or tenant must provide notice before the next month begins to end the lease. While the term "tenancy at will" also does not have a defined end date, it is usually more informal and can be terminated at any time by either party without advance notice, making it somewhat different in nature from periodic tenancy. Thus, the periodic tenancy is more fitting as it implies regular renewal under a defined timeline, whereas a tenancy at will is less structured. A fixed-term lease clearly has a specific ending date as well as predetermined conditions regarding duration. A month-to-month lease could also seem to fit, but it typically implies a periodic nature, aligning it more with periodic tenancies. Overall, the periodic tenancy distinguishes itself through its structure of renewal and operational continuity, making it the best answer for the question posed.