Leasing License Practice Exam

What happens to the terms of a lease if a tenant's building is converted into condominiums?

1. They are rewritten and updated

2. They continue to bind the leaseholder until expiration

3. They must be vacated without cause

4. They become automatically renewed

The correct answer is: They continue to bind the leaseholder until expiration

When a tenant's building is converted into condominiums, the existing lease agreements typically remain in effect, continuing to bind the leaseholder until the lease expires. This means that the terms of the lease are honored, and the tenant retains their rights to occupy the unit under the original lease terms, regardless of the change in the property's status. The conversion to condominiums does not automatically invalidate or alter existing leases. Once the lease reaches its expiration date, options may be considered by both the former landlord (now possibly the condo association) and the tenant, but until that time, the lease remains valid and enforceable. This principle ensures stability and protection for tenants during periods of significant changes in property ownership and management.