Humber/Ontario Real Estate Course 4 Exam Practice

What type of occupancy agreement does Ms. Bisset enter into with a life lease project operated by her church?

1. Ms. Bisset would be acquiring a fee simple interest in the project.

2. Ms. Bisset would be obligated to annually confirm her intent to remain in the unit.

3. Ms. Bisset would purchase the right to live in the unit for the duration of her life.

4. Ms. Bisset would purchase the right to live in the unit, including building insurance, property taxes, and repair costs.

The correct answer is: Ms. Bisset would purchase the right to live in the unit for the duration of her life.

In this scenario, the correct answer is C. Ms. Bisset enters into a life lease agreement with a life lease project operated by her church. In a life lease agreement, Ms. Bisset purchases the right to live in the unit for the duration of her life. This means that she does not own the unit outright (fee simple interest), but rather has the right to occupy it for her lifetime. Option A is incorrect because a fee simple interest implies full ownership of the property, which is not the case in a life lease agreement. Option B is incorrect as there is no requirement for Ms. Bisset to annually confirm her intent to remain in the unit in a typical life lease agreement. Option D is also incorrect because in a life lease agreement, Ms. Bisset is not responsible for building insurance, property taxes, or repair costs. These responsibilities typically fall on the entity operating the life lease project.