Humber/Ontario Real Estate Course 3 Exam Practice

What type of right would Ms. Bisset acquire if moving into a local life lease project?

1. Acquiring the right to occupy the unit for life.

2. Acquiring fee simple interest in the property.

3. Annual confirmation of intent to stay is required.

4. Purchasing a leasehold interest in the unit.

5. Right to live with an obligation to participate in community events.

6. Limited right to use the unit for a specified period.

The correct answer is: Acquiring the right to occupy the unit for life.

The correct answer is that Ms. Bisset would acquire the right to occupy the unit for life when moving into a local life lease project. A life lease is a unique form of tenure where individuals purchase the right to live in a specific unit for the duration of their life, rather than owning the property itself. This arrangement is often designed for seniors, allowing them security in their housing and a sense of community without the burdens associated with traditional homeownership. In this scenario, Ms. Bisset is gaining a long-term right to occupy her unit, making it a fitting choice. The other options present varying ownership and occupancy rights that do not accurately reflect the nature of a life lease. For example, fee simple interest implies outright ownership of the property, which is not applicable in a life lease situation. Requirements regarding annual confirmations or participation in community events, while potentially relevant to some projects, do not define the primary right Ms. Bisset would acquire under a life lease. Additionally, the limited right to use for a specified period is not characteristic of life leases since they are designed to provide a lifelong right to occupancy.