Humber/Ontario Real Estate Course 2 Exam Practice

What is a similarity between land lease and life lease communities in Ontario?

1. Both involve fee simple ownership.

2. Neither requires payment of maintenance fees.

3. Occupants in both types do not own the land.

4. Both typically last indefinitely.

5. Both types include ownership of common areas.

6. Both are exemptions from property taxes.

The correct answer is: Occupants in both types do not own the land.

In both land lease and life lease communities in Ontario, occupants do not own the land. This is a critical similarity between the two types of arrangements. In a land lease arrangement, the homeowner owns the dwelling but not the land on which it sits. The land is leased from the landowner or community corporation. In a life lease arrangement, the homeowner purchases the right to occupy a unit for the duration of their life, but they do not own the land. Option A is incorrect because land lease and life lease communities do not involve fee simple ownership; rather, they involve leasehold or other non-ownership interests. Option B is incorrect as both types typically involve the payment of maintenance fees by the occupants. Option D is incorrect since life lease arrangements have a defined term (the life of the occupant) rather than lasting indefinitely. Option E is incorrect as ownership of common areas may or may not be included in land lease and life lease communities, but it is not a defining similarity between the two. Option F is incorrect as neither land lease nor life lease arrangements are exemptions from property taxes.