Humber/Ontario Real Estate Course 4 Exam Practice

Which similarity exists between land lease communities and life lease communities in Ontario?

1. Both communities involve the payment of various ongoing services by occupants.

2. Both types are based on a land lease arrangement.

3. Both are subject to the Residential Tenancies Act.

4. Both usually have a non-profit sponsor.

5. Both restrict occupancy to senior citizens.

6. Both arrangements require a lease-to-own agreement.

The correct answer is: Both communities involve the payment of various ongoing services by occupants.

Land lease communities and life lease communities in Ontario share the similarity that both involve occupants paying for various ongoing services. In these communities, residents are typically responsible for fees that cover maintenance and services such as landscaping, snow removal, and sometimes even utilities. This structure allows for a shared responsibility for communal living and upkeep, promoting community among residents while ensuring that the facilities remain well-maintained. Regarding other options, while some life lease communities may have a non-profit sponsor, not all do, making this statement less universally applicable. Similarly, while land lease agreements might involve a lease arrangement, life lease communities are generally structured around a different framework that doesn’t strictly classify under land lease arrangements. Additionally, while some communities may indeed restrict occupancy to senior citizens, this is not a requirement for all. Not all arrangements are governed by the Residential Tenancies Act, as this depends on the specific type of lease and community structure, which can vary in their applicability. Therefore, the focus on ongoing service payments effectively illustrates a critical aspect of both types of communities.