Humber/Ontario Real Estate Course 4 Exam Practice

What is the typically allowed timeframe for a landlord to exercise their first right of refusal if it exists in a tenancy agreement within a land lease community?

1. The landlord is given 72 hours to buy the property on the same terms and conditions after receiving another offer.

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

3. The landlord has a maximum of 48 hours to match another offer received by the tenant if such a right exists.

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

5. The landlord has 24 hours to accept the offer.

6. The landlord must respond within one business week.

The correct answer is: The landlord is given 72 hours to buy the property on the same terms and conditions after receiving another offer.

The correct answer indicates that when a first right of refusal exists in a tenancy agreement for a land lease community, the landlord is typically granted 72 hours to match or be presented with an offer from a tenant interested in selling their property. This timeframe provides the landlord with a defined period to decide whether to purchase the property under the same conditions presented in the tenant's offer. In the context of land lease communities, this clause is significant as it empowers landlords to retain control over the properties within their community and prevents the potential influx of outside buyers who may not align with the community's standards. Options that suggest no first right of refusal, longer or shorter response times, automatic rights without trading conditions, or uncertain response timelines do not reflect common practices or legal standards governing these agreements. Thus, the 72-hour provision is specifically rooted in legal practices designed to ensure fairness and protect the interests of both parties involved in the transaction.