Humber/Ontario Real Estate Course 4 Exam Practice

Regarding the Sale of Tenant Occupied Properties form, which statement is true?

1. It is optional to use for properties where a tenant occupies the unit.

2. It must be used for all residential tenancies in Ontario.

3. It provides protection for property managers but not for the tenants.

4. It is used to disclose specific details about tenant rights and lease terms to a potential buyer.

The correct answer is: It is used to disclose specific details about tenant rights and lease terms to a potential buyer.

The Sale of Tenant Occupied Properties form serves a crucial role in providing potential buyers with important information regarding the rights of tenants and the specifics of existing lease agreements. This transparency is essential to ensure that buyers understand the obligations they will inherit upon purchasing a property that is currently tenant-occupied. By using this form, sellers can outline details such as the terms of the lease, the rights of the tenants, and any relevant conditions that might affect the sale or the tenants' living situation. This disclosure protects both the tenants, who retain their rights, and the buyers, who can make informed decisions knowing what to expect regarding the existing tenancy. The other statements do not accurately reflect the purpose or requirements of the form. For instance, it is not an optional document for all tenant-occupied properties, nor does it exclusively serve to protect property managers without consideration for tenant rights. Therefore, the statement highlighting its role in disclosing tenant rights and lease terms to potential buyers is the accurate and informative assertion regarding this form.