Humber/Ontario Real Estate Course 4 Exam Practice

What is true regarding a landlord's rights in a land lease community?

1. The landlord can include a right of first refusal if agreed upon by both parties.

2. Every tenancy agreement must have a right of first refusal clause.

3. The landlord must act as the tenant’s agent when the tenant sells their home.

4. The landlord is prohibited from inserting a right of first refusal in tenancy agreements.

The correct answer is: The landlord can include a right of first refusal if agreed upon by both parties.

A landlord's rights in a land lease community can include the ability to include a right of first refusal if both the landlord and tenant agree to it. This clause allows the tenant the opportunity to purchase the property before the landlord can sell it to someone else, effectively giving the tenant an advantage in securing the property they are currently leasing. This provision is not a requirement but rather a negotiable aspect of the tenancy agreement, meaning it can enhance the relationship and terms between landlord and tenant if both parties find it beneficial. The necessity of mutual agreement makes this option viable, and it's important to understand that while landlords have many rights, not all lease agreements must contain every possible clause, like a right of first refusal. Hence, the idea that every tenancy agreement must contain this clause or that the landlord must act as an agent for the tenant when selling their home does not reflect standard practices and obligations. Additionally, landlords retaining the option not to insert any specific clause into agreements, including the right of first refusal, emphasizes the flexibility in negotiating lease terms between both parties.