Humber/Ontario Real Estate Course 2 Exam Practice

Which statement correctly describes a landlord's first right of refusal in a land lease community?

1. The landlord has an automatic first right of refusal on all tenant land lease homes or mobile homes within the land lease community.

2. The landlord in a land lease community does not have a first right of refusal regarding the purchase of any tenant's home.

3. If such a right exists in a tenancy agreement, the landlord has a maximum 48-hour period to match another offer received by the tenant.

4. If such a right exists in a tenancy agreement, the landlord is given 72 hours (after receipt of another offer) to buy the property on the same terms and conditions.

The correct answer is: If such a right exists in a tenancy agreement, the landlord is given 72 hours (after receipt of another offer) to buy the property on the same terms and conditions.

In a land lease community, a landlord's first right of refusal typically means that if a tenant decides to sell their property within the community, the landlord has the first opportunity to purchase it before the tenant sells to an outside party. The correct statement in this scenario, option D, is accurate because it outlines the standard practice where the landlord is given a period of time, in this case 72 hours after receiving another offer, to match the terms and conditions of the offer and purchase the property. This provision is put in place to provide the landlord with the opportunity to maintain control over the community and potentially acquire the property at the same terms as the outside offer. Options A, B, and C are incorrect because they do not accurately reflect the typical rights and procedures involved in a landlord's first right of refusal in a land lease community.