Leasing License Practice Exam

What happens to the existing leases in an apartment building that is being converted to condominiums?

1. The leases are null and void

2. The terms and conditions of the current leases prevail

3. The leases must be renegotiated

4. The tenants must vacate immediately

The correct answer is: The terms and conditions of the current leases prevail

When an apartment building is converted into condominiums, the existing leases remain valid, and the terms and conditions specified in those leases continue to apply. This means that the rights and responsibilities outlined in the leases, such as rental amounts and duration, will still be honored until the leases reach their expiration. The reason for this is that tenants have legal protections regarding their leases, and converting a property does not inherently nullify those agreements. In fact, landlords cannot simply dismiss existing leases or force tenants to vacate without adhering to the lease terms and applicable laws. This process often involves notifying tenants about the transition, but it respects the integrity of their current rental agreements until they expire or are otherwise resolved according to the lease terms. In the context of the other options, while they suggest various outcomes for the leases during a conversion, they do not account for the legal framework that protects those existing agreements. Thus, option B accurately represents the legal standing of the leases in such a scenario.