Humber/Ontario Real Estate Course 1 Exam Practice

Which guideline helps determine whether the Residential Tenancies Act or the Commercial Tenancies Act applies to a rental property with mixed use?

1. The rental property would fall under the Commercial Tenancies Act as a portion of the home is used for commercial purposes

2. The renter might prefer the Commercial Tenancies Act for better tenant rights

3. The primary use of the property is a key guideline

4. The home must follow only one act consistently

5. The intent of the leaseholder determines the applicable Act

6. The rental agreement must be revised upon tenant change

The correct answer is: The primary use of the property is a key guideline

The primary use of the property serves as a key guideline in determining whether the Residential Tenancies Act or the Commercial Tenancies Act applies to a rental property with mixed use. This principle is critical because it identifies the dominant function of the property — whether it leans more towards residential living or commercial activities — which ultimately dictates the governing legislation. In situations where a property has both residential and commercial aspects, the overarching use as determined by factors like the proportions of space dedicated to each activity and the nature of tenant operations will guide the applicability of these Acts. If the property is primarily residential even with a commercial component, it would typically fall under the Residential Tenancies Act, whereas if the commercial usage predominates, the Commercial Tenancies Act would be appropriate. Other options discussing tenant preferences, intent of the leaseholder, or the necessity for consistent application of one Act do not fundamentally address the concrete guideline based on primary use that is most relevant in legal classifications. These considerations may influence decisions but do not represent the primary determining factor as stated in the correct answer.