Leasing License Practice Exam

Which type of tenancy may be terminated by either party without cause upon proper notice?

1. Fixed-term tenancy

2. Periodic tenancy

3. Tenancy for years

4. Tenancy at sufferance

The correct answer is: Periodic tenancy

In the context of lease agreements, a periodic tenancy is characterized by its ongoing nature, where the lease automatically renews for consecutive periods, such as weekly, monthly, or yearly, based on the schedule set at the beginning of the agreement. This type of tenancy allows either party—the landlord or the tenant—to terminate the lease without needing to provide a specific reason. Instead, the party wishing to terminate must provide notice to the other party within the timeframe specified by the lease or as defined by local laws, typically aligned with the length of the rental period (for example, a month’s notice for a monthly rental agreement). The flexibility inherent in periodic tenancies offers both parties the ability to reassess their arrangements and make changes when necessary, as opposed to other types of tenancies—like fixed-term tenancies and tenancies for years—which are bound by specific start and end dates. Tenancies at sufferance, on the other hand, refer to situations where a tenant remains in possession of the property after their lease has expired, and the landlord has not agreed to the renewed occupancy, which does not fit the context of mutual termination rights.