Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following indicates a commercial tenancy?

1. A fixed tenancy becomes a periodic tenancy at the end of the term.

2. Disputes are handled by the Landlord and Tenant Board.

3. Rents can only be charged in relation to the guidelines.

4. The landlord and tenant can negotiate a security deposit.

The correct answer is: The landlord and tenant can negotiate a security deposit.

A commercial tenancy is a rental agreement between a landlord and a business for the purpose of conducting business activities or operations. In a commercial tenancy, the landlord and tenant can negotiate terms such as rent, lease length, and any security deposits required. Unlike residential tenancies, where there are more regulations and guidelines in place to protect tenants, commercial tenancies offer more flexibility for negotiation between the landlord and the tenant. Therefore, the ability for the landlord and tenant to negotiate a security deposit is a characteristic that indicates a commercial tenancy. In relation to the other options: - A fixed tenancy becoming a periodic tenancy at the end of the term does not specifically indicate a commercial tenancy, as this can apply to both residential and commercial tenancies. - Disputes being handled by the Landlord and Tenant Board typically pertains to residential tenancies in Ontario, not commercial tenancies. - Rents being charged in relation to guidelines is more common in residential tenancies, where rent control laws and guidelines may apply. It is less common in commercial tenancies where rents are often negotiated based on market rates and other factors.