What type of lease automatically renews itself without the need for a termination notice?

What type of lease automatically renews itself without the need for a termination notice?

• A. Fixed-term lease
• B. Periodic tenancy
• C. Lease at will
• D. Month-to-month lease

Answer: (B)

A periodic tenancy is characterized by its automatic renewal feature, which occurs at regular intervals, such as weekly or monthly. This type of lease continues until either party provides a notice of termination, but unlike a fixed-term lease, there is no fixed end date. This makes it distinct in that it renews itself automatically unless action is taken by one of the parties involved. In contrast, a fixed-term lease has a specific start and end date, and it does not renew itself automatically; it simply expires once the term is completed. A lease at will allows either party to terminate the lease at any time without notice, meaning it is inherently flexible but does not include any automatic renewal provisions. A month-to-month lease, while similar in some respects to a periodic tenancy, typically requires a notice period for termination but does not automatically renew in the same way unless the terms specify a continuation without a formal agreement. Thus, periodic tenancy is the correct answer due to its nature of self-renewal without needing formal termination notice.

A periodic tenancy is characterized by its automatic renewal feature, which occurs at regular intervals, such as weekly or monthly. This type of lease continues until either party provides a notice of termination, but unlike a fixed-term lease, there is no fixed end date. This makes it distinct in that it renews itself automatically unless action is taken by one of the parties involved.

In contrast, a fixed-term lease has a specific start and end date, and it does not renew itself automatically; it simply expires once the term is completed. A lease at will allows either party to terminate the lease at any time without notice, meaning it is inherently flexible but does not include any automatic renewal provisions. A month-to-month lease, while similar in some respects to a periodic tenancy, typically requires a notice period for termination but does not automatically renew in the same way unless the terms specify a continuation without a formal agreement.

Thus, periodic tenancy is the correct answer due to its nature of self-renewal without needing formal termination notice.