Humber/Ontario Real Estate Course 3 Exam Practice

Which scenario applies to both land lease and life lease communities in Ontario?

1. Residents hold freehold titles.

2. Both involve indefinite ownership rights.

3. Occupants do not own the land.

4. No maintenance fees are due.

5. Both are exempt from property taxes.

6. Residents own a percentage of the land.

The correct answer is: Occupants do not own the land.

Occupants do not own the land in both land lease and life lease communities. In a land lease community, residents typically own their individual homes but lease the land on which those homes are situated from a landlord. Similarly, in life lease communities, residents have a long-term lease that allows them to occupy a unit within a building, but they do not own the land itself or the building; instead, they have a right to live there for life or until they choose to leave. This fundamental characteristic of not owning the land is a key aspect that differentiates these communities from freehold ownership, where land is owned outright. Understanding this distinction is crucial for anyone involved in real estate transactions or evaluations involving these types of communities in Ontario.