Illinois Leasing Agent Practice Exam

Which of the following best describes the rights of tenants when a building enters new ownership?

1. They must resign their leases

2. They must accept new rental terms

3. Their leases remain valid

4. Their rights are abolished

The correct answer is: Their leases remain valid

The correct answer is that tenants' leases remain valid even when a building enters new ownership. This principle is grounded in property law, where leases are considered binding agreements between the landlord and the tenant. When ownership of a property changes hands, the new owner typically steps into the shoes of the previous landlord and inherits the existing leases. This means that the terms and conditions agreed upon in the lease remain in effect under the new owner, and tenants are not required to resign their leases or accept any new rental terms simply due to the change in ownership. Understanding this concept is crucial for both tenants and landlords, as it helps protect the rights of tenants, ensuring they enjoy the complete benefit of their lease agreements regardless of any changes in property ownership.