Humber/Ontario Real Estate Course 3 Exam Practice

Which term best describes the relationship between a tenant and the property owner in a leasehold estate?

1. Tenant has temporary interest

2. Tenant owns the land

3. Owner has no legal rights

4. Owner is considered a tenant

5. Tenant acquires fee simple interest

6. Tenant and owner share ownership

The correct answer is: Tenant has temporary interest

The relationship between a tenant and the property owner in a leasehold estate is best described as one where the tenant has a temporary interest in the property. In a leasehold estate, the tenant enters into a legal agreement with the property owner (landlord) that grants them the right to use and occupy the property for a specified period. This arrangement is temporary because, at the end of the lease term, the tenant must vacate the property, and the rights revert back to the owner. Other options would not accurately describe this relationship. The tenant does not own the land outright, as ownership remains with the property owner. The owner retains legal rights over the property despite the tenant's occupation and has the ability to enforce lease terms. The owner is not classified as a tenant; rather, they are the landlord in this relationship. Additionally, a tenant does not acquire fee simple interest, which refers to full ownership of an estate without any limitations. Lastly, tenants and owners do not share ownership in this context; the leasehold interest is limited and does not confer any ownership rights to the tenant.