Humber/Ontario Real Estate Course 1 Exam Practice

Which rule of tenancy applies to a residential home with an in-home office?

1. The home office portion would likely fall under commercial tenancy regulations

2. The entire property is always under the Residential Tenancies Act

3. The predominant use guideline applies in deciding the applicable Act

4. The tenant can decide which Act to apply

5. Residential and commercial portions are always regulated separately

6. The landlord's preference determines the applicable Act

The correct answer is: The predominant use guideline applies in deciding the applicable Act

The reasoning for choosing the predominant use guideline is that it effectively assesses the nature of the tenancy based on how the property is primarily being used. In a situation where a residential home also has an in-home office, the primary function and use of the space will influence which tenancy regulations apply. If the residential use of the home is predominant, then the Residential Tenancies Act would typically govern the entire property. Conversely, if the main function is commercial, commercial tenancy regulations may apply. This approach ensures that the specific needs of tenants and landlords are met according to the principal use of the property. Other options imply a rigidity or inconsistency in how tenancy laws apply, such as suggesting commercial regulations would always encompass the home office or that the landlord’s preferences dictate the applicable laws. In practice, tenancy laws are designed to reflect the nature of occupancy, not just individual choice or isolated aspects of property use.