Michigan Real Estate Exam Practice Question
A tenant in a house is on a month-to-month lease. The owner sells the property. What happens to the lease?
Correct Answer: A
Rationale: When a property is sold, existing leases typically remain in effect, meaning the lease is assigned to the new owner (Option A). This protects the tenant's rights and ensures continuity of the lease agreement.
Option B is incorrect; the sale of the property does not automatically require the tenant to vacate, as their lease remains valid.
Option C suggests that a new lease must be negotiated, which is not necessary unless the new owner chooses to change the terms, but the existing lease still stands.
Option D misrepresents the situation; while the new owner has rights, they must honor the existing lease unless they follow proper legal eviction processes.
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