Hawaii Pre-Licensing National Practice Exam

What does the term "holdover tenant" refer to?

1. A lessee who vacates the property early

2. A lessee who exceeds their lease period

3. A lessee who defaults on rent

4. A lessee who negotiates a new lease

The correct answer is: A lessee who exceeds their lease period

The term "holdover tenant" specifically refers to a lessee who remains in possession of the leased property after their lease period has expired. This situation typically occurs when the tenant does not vacate the premises at the end of the lease term, thereby exceeding the agreed-upon duration of the lease. In many jurisdictions, this can lead to various legal implications for both the landlord and the tenant, including potential continuation of the lease on a month-to-month basis under certain conditions, depending on local laws and the terms of the original lease agreement. The other options describe different scenarios that do not pertain to the concept of a holdover tenant. For example, a lessee who vacates early or defaults on rent does not fit the definition, as their actions do not involve remaining on the property after a lease ends. Similarly, negotiating a new lease represents a new contractual agreement, rather than a holdover situation. Understanding the term "holdover tenant" is crucial for both renters and landlords, as it affects property management, rental agreements, and potential legal actions.