Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following best describes the concept of a life lease project?

1. Life lease projects allow a person to purchase the right to occupy a unit for their lifetime.

2. Life lease projects are designed to give tenants security of tenure and a monthly rent that will not increase over their lifetime.

3. Life lease projects give occupants a fee simple interest in their respective units.

4. Life lease projects provide an alternative for those who want to live in a condominium, but are unwilling to pay any sort of maintenance fees.

The correct answer is: Life lease projects allow a person to purchase the right to occupy a unit for their lifetime.

A life lease project is a residential arrangement that indeed allows individuals to purchase the right to occupy a unit for their lifetime. In this type of project, the occupants typically pay a lump sum at the outset for the right to live in the unit until they choose to leave or pass away. After they exit, the unit is usually returned to the operator, who may then re-lease it to another occupant, allowing for ongoing occupancy options without shifting property ownership. The focus of a life lease project is on providing security and stability for residents, which appeals particularly to seniors or those looking for long-term housing solutions without the responsibilities of traditional home ownership. This format restricts true ownership (such as fee simple title) but offers a lifelong right to reside in the property under agreed terms, effectively making it similar to renting with significant security tied to lifetime tenancy.