Leasing License Practice Exam

Which of the following situations aligns with the terms of existing leases during a building conversion?

1. The leases must be signed again by all tenants

2. Tenants can be dismissed without cause

3. The lease terms remain intact until expired

4. Lease terms are modified to match new property rules

The correct answer is: The lease terms remain intact until expired

The situation that aligns with the terms of existing leases during a building conversion is when the lease terms remain intact until they expire. When a building undergoes a conversion, such as transforming from commercial to residential or redeveloping existing spaces, existing leases typically stay in force according to their original agreements. This principle maintains the legal rights of tenants, ensuring that they continue to receive the benefits and obligations outlined in their leases. Therefore, until the lease reaches its expiration date, tenants retain their rights under the existing contract, which includes conditions like rental amounts, duration, and other stipulations originally agreed upon. While other scenarios such as requiring lease resignatures, dismissing tenants without cause, or modifying terms to align with new property rules may arise in specific circumstances, they often do not reflect standard lease law practices during conversions. In fact, dismissing tenants or altering previously agreed terms without their consent could be illegal or lead to disputes. The integrity of existing leases is a foundational concept in lease agreements, providing security and predictability for tenants.