Tennessee Real Estate License Exam Practice Question
A management company takes over the management of an apartment complex. What happens to the existing tenants' leases?
Correct Answer: A
Rationale: When a management company takes over an apartment complex, the existing tenants' leases remain in effect, meaning the lease terms prevail (Option A). This ensures continuity and stability for tenants, protecting their rights under the original agreements.
Option B is incorrect as tenants do not have an automatic right to cancel their leases simply due to a change in management.
Option C is also wrong; leases are not automatically canceled in such situations, which would be legally problematic.
Option D misrepresents the situation; the management company cannot unilaterally cancel leases with notice, as tenants' rights must be honored.
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