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Residential TradingMulti Unit DwellingsONMEDIUM

The seller of a legal duplex agrees to sell to a buyer who in good faith intends to live in the upper unit. The seller gives the upper tenant a proper notice of termination on the buyer's behalf. Who must compensate the tenant, and how much?

Correct Answer

B) The seller who gave the notice owes one month's rent or an acceptable other unit

Section 49.1(1) requires the landlord who gives a notice on behalf of a purchaser to compensate the tenant in an amount equal to one month's rent or offer another rental unit acceptable to the tenant. Section 49.1(2) says that, despite s. 18, this obligation stays with the landlord who gave the notice and does not become the purchaser's.

Answer Options
A
The buyer, who takes over the landlord's obligations on closing, owes one month's rent
B
The seller who gave the notice owes one month's rent or an acceptable other unit
C
No one owes compensation, provided the notice gives the tenant at least 60 days
D
The seller owes half a month's rent and the buyer the other half after closing

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Key Terms

purchaser's own usesection 49.1compensationduplex sale
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