Chapter 6 – Questions & Answer Guide
Chapter 6
11. In the event that the tenant abandons a commercial premises, the landlord is best advised to notify the tenant that the landlord intends to enter into possession of the premises solely to re-let on the tenant’s account:
(1) or else the doctrine of frustration will be applied to the situation.
(2) to avoid the tenant having grounds for an action in trespass.
(3) so that all of the landlord’s rights against the tenant will be preserved.
(4) because otherwise the landlord will be breaching the covenant of quiet enjoyment.
13. Where a commercial tenancy is expressed as lasting for a period of one year and terminating on a fixed date, how much notice must be given to terminate the tenancy?
(1) No notice is required.
(2) Thirty days’ notice is required.
(3) Six months’ notice is required.
(4) Reasonable notice is required.
30. In the situation where a residential tenant under a fixed term tenancy abandons the premises prior to the end of the term, the obligation imposed on the landlord to try to re-rent the premises as quickly as possible is referred to as:
(1) the duty to mitigate damages.
(2) the covenant of quiet enjoyment.
(3) derogation from the grant.
(4) the doctrine of interesse termini.
39. Which of the following is NOT required in a notice of the end of the tenancy agreement by a tenant under the Residential Tenancy Act?
(1) Written notice signed by the tenant
(2) The address of the premises for which the notice is given
(3) The occupations of the parties
(4) The date of termination of the tenancy
85. Diana leased an apartment from Horst for 12 months commencing January 1. On April 1, Horst conveyed the building to Bing. On April 15, Bing gave Diana a notice of end of the tenancy agreement effective May 15. The reason for the termination was that Bing wanted the apartment for his daughter, who had recently been married. Under the Residential Tenancy Act, what is the earliest date by which Bing can require Diana to leave?
(1) May 31
(2) May 15
(3) December 31
(4) June 30
108. The main difference between a lease and a license is:
(1) licenses are governed by the ordinary law of contract and confer no estate in land whereas leases convey an estate in land.
(2) licenses are oral contracts whereas leases must be in writing pursuant to the Law and Equity Act.
(3) the terminology used to describe the parties, i.e., landlord & tenant/licensor & licensee.
(4) licenses provide exclusive possession whereas leases only give the rights described in the lease document.
176. A “periodic” tenancy is:
(1) a term lease.
(2) a lease for a certain period of time.
(3) a tenancy which automatically renews itself on the last day of the term for a further term of the same length until it is terminated by either party upon proper notice.
(4) a tenancy which is created in a commercial context after the entering of the lease and prior to the entering of possession by the tenant.
195. There are two ways to surrender a lease under a commercial tenancy. One is by an act of the parties; the other is:
(1) by operation of law.
(2) by the order of an arbitrator.
(3) by the order of the Public Trustee.
(4) by an order of the Residential Tenancy Board.
217. Kent rented his Kerrisdale house to Lisa for a fixed term of three years commencing July 1, 2011 and terminating on June 30, 2014 for an annual rent of $12,000 payable in equal monthly instalments on the first day of each month. On April 12, 2013 Lisa abandoned the premises without giving notice to Kent, and without paying the rent for April. The British Columbia Residential Tenancy Act requires Kent to:
(1) hire a bailiff to distrain Lisa’s goods left on the premises to compensate Kent for the rent in arrears.
(2) limit his claim against Lisa for arrears of rent to the amount of the security deposit provided by her.
(3) attempt to re-rent the premises and mitigate his damages.
(4) sue Lisa for the rent due for the remaining term of the lease without any obligation for Kent to account to Lisa for the security deposit and accrued interest.
278. Lawson has rented his warehouse to Tyler who runs a moving and storage business. Which one of the following is NOT a remedy available to Lawson if Tyler fails to pay his rent?
(1) Lawson can re-enter the premises and forfeit the rent payable for the balance of the rental period.
(2) Lawson may seize the personal property of Tyler and sell it in order to pay the arrears of rent.
(3) Lawson can sue Tyler for the rent as would any creditor.
(4) Lawson can apply under the provisions of the Residential Tenancy Act for an arbitrator to be appointed.
288. When attempting to determine whether a particular relationship is that of landlord and tenant or licensor and licensee, it is best to:
(1) look at the formal wording of the document.
(2) look at the substance of the agreement between the parties.
(3) consult the Residential Tenancy Act.
(4) consult the Commercial Tenancies Act.
297. Where a landlord refuses to allow a commercial tenant to take possession of the demised premises, the tenant may:
(1) get an order for specific performance.
(2) maintain an action for breach of the covenant of quiet enjoyment.
(3) sue the landlord for damages.
(4) do none of the above.
316. A lease of real property is a contract by which the landlord conveys:
(1) an easement to the tenant.
(2) exclusive possession to the tenant.
(3) a licence to occupy to the tenant.
(4) a right of survivorship to the tenant.
319. When Joan was viewing the apartment in a converted house which she was contemplating renting from Zack, she noticed that the steps and the handrail in the back staircase appeared to be in a state of disrepair. When Joan moved in after signing the lease, she discovered that she could not use the back stairs because the bottom three stairs were rotten and the handrail was not bolted down. Which of the following statements is TRUE?
(1) Unless the lease provides that Zack will repair the premises, he has no responsibility to make any repairs.
(2) Zack is only obligated to make any necessary repairs that are brought to his attention in writing at the time the parties enter the lease.
(3) Joan is obligated to do the repairs if she wants them to be done, because she entered the lease aware of the condition of the premises. (4) Zack is obliged by law to maintain the premises in a state of repair that complies with safety standards, irrespective of the condition of the premises at the time the lease was entered.
355. A lease granted by a tenant for a term which is less than the whole of his remaining interest granted in the original lease is referred to as:
(1) an assignment.
(2) a tenancy by sufferance.
(3) a sub-lease.
(4) a tenancy at will.
364. An assignment of a commercial lease may be made by a tenant to a third party:
(1) only if there is an express provision in the lease allowing the tenant to do so.
(2) only if the tenant has a licence to do so from the landlord.
(3) only if the landlord’s consent can be implied from the course of dealings leading up to the execution of the lease.
(4) unless the tenant is specifically prevented from doing so by a covenant in the lease.
381. A tenancy which automatically renews itself on the last day of the term for a further term of the same duration until terminated by either party with proper notice is called a:
(1) tenancy at will.
(2) tenancy at sufferance.
(3) periodic tenancy.
(4) term fixed tenancy.
425. Which one of the following is NOT a required provision in a lease?
(1) The amount of rent and method of payment
(2) The commencement and term of the lease
(3) The signatures of the parties
(4) The previous address of the lessee
452. Which of the following is NOT an essential requirement of a lease?
(1) The name of the parties
(2) A description of the premises being leased
(3) The rent
(4) The addresses and occupations of the parties
459. With respect to commercial tenancies, the covenant of quiet enjoyment is:
(1) an implied covenant that the landlord will refrain and will cause others to refrain from making noise such that it would interfere with the conduct of the tenant’s business.
(2) an assurance that the tenant will conduct his or her business in such a manner as to obey all noise bylaws.
(3) an assurance that all unfurnished premises be fit for human habitation.
(4) an assurance to the tenant against the consequences of a defective title involving the landlord or those lawfully claiming under the landlord.
513. Charlie enters into a fixed term tenancy agreement with Lucy for the rental of a suite during the school year. The agreement is for eight months beginning on September 1, 2018. The agreement does not provide that Charlie must vacate the rental unit when the term expires. In April, Charlie finds a summer job and decides to remain in the suite after the original lease expires. He pays Lucy one month’s rent on May 1, 2019, which she accepts. No new agreement is entered into. Two days later, Lucy learns that her brother, Linus, has been transferred back to Vancouver and is expected to arrive at the end of the month with his new wife, Sally. Linus has indicated that he wishes to live in the suite now occupied by Charlie. Which of the following statements is TRUE?
(1) Under the termination provisions of the Residential Tenancy Act, Lucy can give Charlie notice of the end of the tenancy agreement since she intends, in good faith, for her brother to occupy the premises.
(2) Lucy just has to wait until the end of May, and can evict Charlie at any time after that, since the original fixed term lease has expired and there is no new tenancy agreement.
(3) If Linus decides to purchase the suite, and Lucy provides Charlie with at least two months’ notice and pays an amount equivalent to one months’ rent, Linus must move in within a reasonable time after the effective date of the notice and stay for at least 6 months or else a court may order that Charlie be paid an amount equivalent to 12 months’ rent.
(4) If Linus decides to purchase the suite and plans to move in right away, Lucy can give at least 1 month notice to end the tenancy.
523. Which one of the following accurately describes the law with respect to security deposits on a commercial tenancy?
(1) Security deposits must not exceed 50% of the monthly rental.
(2) There is no limit on the amount of security deposit which may be charged.
(3) Security deposits are not permitted.
(4) Security deposits cannot exceed one month’s rent.
527. Martha, who has been George’s landlord for the past three months, has seized George’s furniture from his rented premises and threatens to sell the furniture in order to pay George’s arrears of rent. Which one of the following statements is FALSE?
(1) Martha has chosen an illegal remedy against George if the rented premises is George’s personal residence.
(2) Martha has chosen a remedy called “distress” or “distraint”.
(3) Martha has chosen the most effective remedy against George if the rented premises is a warehouse.
(4) Martha has taken an action which can be described as a classic example of a private nuisance.
549. The most effective remedy available to a landlord when a tenant does not pay the rent in a commercial tenancy is:
(1) an injunction.
(2) a garnishing order.
(3) distress.
(4) a demand letter.
558. When, with respect to commercial tenancies, there is said to be an implied covenant of quiet enjoyment, it means:
(1) that the landlord will refrain and will cause others to refrain from entering into competition with the tenant’s business.
(2) that the tenant will conduct his affairs in such a manner as not to violate local noise bylaws and that, if he/she does, he/she will be liable for any fines or penalties levied.
(3) that the landlord provides assurance to the tenant against the consequence of a defective title involving the landlord or those lawfully claiming under him/her.
(4) that the landlord will ensure that all tenants conduct their affairs in such a manner as not to violate local noise bylaws.
572. Under the Residential Tenancy Act, the landlord is entitled to collect a security deposit equal to:
(1) one half of one month’s rent.
(2) one month’s rent.
(3) the first and last month’s rent.
(4) six months’ rent.
616. Which of the following statements is TRUE with respect to security deposits in a commercial tenancy?
(1) The interest which accrues on a security deposit is always paid to the account of the landlord.
(2) Someone who purchases the property from the landlord is obligated to repay the security deposit to the tenant.
(3) The amount of a security deposit may be freely negotiated between the two parties to a commercial lease.
(4) All of the above
655. Jennie has rented her apartment on a month to month basis for two years without a rent increase. She receives a properly delivered rent increase notice on July 31 raising her rent from $750 per month to $1,075 per month effective November 1. She feels this increase is excessive and discusses it with her landlord, but her landlord remains convinced that $1,075 is a fair market value rent, even though the applicable Consumer Price Index (CPI) is 3%. Which of the following statements is TRUE?
(1) The notice of rent increase is invalid because it is less than 6 months before it becomes effective.
(2) This rent increase cannot be valid or approved because it is greater than the CPI plus 2%.
(3) This rent increase will be valid only if there has been a change of landlords.
(4) This rent increase will be valid only if approved for special circumstances as set out in the Residential Tenancy Act Regulations.
662. In which one of the following situations may the landlord choose to give the tenant one month’s notice of the end of the tenancy agreement?
(1) Charles is renting a one-bedroom apartment in the West End of Vancouver on a month-to-month basis. He has been diligent in paying his rent on the due date each month but the landlord has recently discovered that Charles’ friend, Christine, has moved into the apartment with him.
(2) Jordan’s warehouse is long overdue for a major renovation which cannot be completed with the present tenant in occupation. Aladdin, the tenant, has four months left on his fixed term tenancy and does not wish to move.
(3) On September 1, Kirsten moved into a small house owned by Jackson without paying the security deposit of $300 requested by the rental agent and according to the terms of the tenancy agreement. On September 30 she tenders $600 for the October rent but refuses to pay the additional $300 for the security deposit.
(4) MacGregor’s son is moving to Vancouver and wants to live in an apartment which MacGregor owns and has rented out to Mrs. Julian for the last 20 years.
743. The notice requirement for termination of a commercial fixed term lease is:
(1) 60 days.
(2) 120 days.
(3) dependent on the term of the lease, i.e. 1 month, 1 month’s notice; 6 months, 6 months’ notice, etc.
(4) not required because the lease automatically expires at the end of the term.
763. Which of the following examples would NOT entitle a landlord to terminate a residential tenancy under the British Columbia Residential Tenancy Act?
(1) Amit, a tenant, has a girlfriend who stays in the apartment with him four or five days a week. They are constantly fighting and screaming late at night which wakes the other tenants.
(2) Jean Paul, a landlord, wants to give notice to Velma, a tenant, so that Jean Paul’s nephew who is moving to Vancouver can live there.
(3) Vittorio, a tenant, has been late in paying his rent for eight months in a row.
(4) Mikhail and Raisa entered a tenancy agreement on May 1 and Raisa moved in on May 15. On June 10 Raisa still had not paid to Mikhail the agreed-upon security deposit.
778. Larry owns a large gift shop. For the past eight years Marie, a jeweller, has leased an area in the back room for use as a workshop. Larry and Marie have an oral agreement that Marie will only use the workshop area during weekday mornings when the gift shop is not busy, so as not to disturb customers with the noise of her work. Marie pays $350 each month to Larry for this right. Larry has sold the shop to Theo for use as a restaurant, but he is uncertain what to do about his long-term tenant. You correctly advise Larry that:
(1) the Commercial Tenancy Act requires that “reasonable notice” of a least six months be given to Marie of Larry’s intention to terminate the tenancy.
(2) in order for Marie to enforce this agreement against Theo, it must be in writing and registered in the Land Title Office.
(3) the agreement between Larry and Marie is not enforceable against Theo because it is only a licence.
(4) the agreement is not enforceable against Larry because it does not meet the requirements of the Real Estate Services Act.
796. Patty and Henry sign a residential tenancy agreement specified to last for one year commencing on January 1, 2015 and ending December 31, 2015 but not specifically requiring the tenant to vacate the rental unit at the end of the tenancy. Assuming neither party has given notice to end the tenancy agreement, which of the following statements about Patty and Henry’s agreement is true under the British Columbia Residential Tenancy Act?
(1) On December 31, the term of the tenancy will automatically renew for another one year term.
(2) On December 31, unless the agreement provides otherwise, the term will automatically renew as a month to month tenancy.
(3) On December 31, the tenancy will automatically terminate.
(4) On December 31, the tenancy will automatically renew for one month and then terminate unless the parties give notice to continue.
806. The duty to repair commercial premises:
(1) is enforceable by a court only if the lease is in writing and registered in the Land Title Office as required by the Land Title Act.]
(2) should be dealt with in writing in a lease to avoid disputes between lessee and lessor.
(3) includes an implied covenant that the tenant will be responsible for fair wear and tear.
(4) is generally a landlord’s obligation unless the lease specifies otherwise.
809. Which of the following statements about periodic tenancies is TRUE?
(1) Where a periodic tenancy is created as a result of a tenant overholding a fixed term commercial lease, the resulting periodic tenancy will be on all the same terms as the fixed term lease except the rent will be increased by ten percent.
(2) Where a periodic tenancy is created at the end of a fixed term commercial lease of five years, the new periodic tenancy will always be for a term of five years.
(3) Where a periodic commercial tenancy is created, it cannot be terminated by either party for at least one year.
(4) Where a fixed-term residential tenancy expires it will automatically convert to a month-to-month periodic tenancy unless the parties have agreed in writing that it will not do so, at the time they entered into a fixed term tenancy agreement.
814. When determining the rights of a tenant of residential premises, which of the following sources of law must the parties look to?
(1) The Commercial Tenancy Act
(2) The common law
(3) The Rent Distress Act
(4) None of the above
828. Which of the following statements is TRUE?
(1) A term in a commercial lease which is contrary to the terms of the Commercial Tenancy Act is void and can only be enforced by the landlord if he has reasonable cause to do so.
(2) The implied covenant of quiet enjoyment at common law means that the tenant has a right of privacy.
(3) A tenant is usually responsible for reasonable wear and tear to the premises, unless otherwise stated in the lease.
(4) The doctrine of interesse termini is a common law rule stating that no estate in land passes until the tenant enters into possession of the leased premises.
855. An assignment of a commercial lease cannot be made by a tenant to a third party:
(1) even if there is a clause in the lease allowing the tenant to do so.
(2) if the landlord has not given his/her consent during the course of dealings prior to execution.
(3) if the tenant is specifically prevented from doing so by a clause in the lease.
(4) if the lease permits subletting of the premises.
870. A tenancy agreement as statutorily defined:
(1) entitles a landlord to exercise the right to distrain a tenant’s goods for arrears of rent.
(2) requires a tenant to carry out all repairs and maintenance of the leased premises.
(3) must always be registered in the Land Title Office to secure a tenant’s rights against subsequent owners of the leased premises.
(4) will be terminated if a residential tenant abandons the rental unit.
914. Which of the following is NOT an example of a situation in which a landlord can end a residential tenancy agreement for cause?
(1) The number of persons permanently occupying a suite is unreasonable.
(2) A tenant fails to give the necessary security deposit within 30 days of the date required by the tenancy agreement.
(3) The premises must be vacated to allow for renovations which cannot be performed while the premises are occupied.
(4) The premises must be vacated to comply with an order made by the local authority regarding zoning.
927. Which of the following is NOT subject to the provisions of the Residential Tenancy Act?
(1) A residential condominium rented out by the offshore owner
(2) An apartment attached to a warehouse rented under a separate lease
(3) A basement suite in a private residence
(4) A house let for a 29-year term
956. Which of the following statements is FALSE with respect to residential tenancies under the provisions of the Residential Tenancy Act?
(1) With the consent of the landlord, a residential tenant can assign or sublet all or part of the leased premises at any time during the term of the tenancy.
(2) A landlord is entitled to give not less than one month written notice of the end of the tenancy agreement to a tenant who, after two months of entering into the tenancy agreement, has failed to give the security deposit required under the agreement.
(3) In cases of emergency, a landlord has a right of entry to leased premises.
(4) A landlord may only increase rent once per year, and must provide either written or oral notice at least three months before it becomes effective.
971. A landlord has rented an apartment to a tenant under a one year tenancy agreement. Three days ago, at the beginning of the third month of the term, the tenant failed to pay rent as due. What action can the landlord take?
(1) The landlord may immediately enter the leased premises and seize the tenant’s furniture of sufficient value to equal the amount of rent owing.
(2) The landlord is prohibited by law from terminating this fixed term lease; it must continue until its expiry date. The landlord’s only remedy is to take the matter to arbitration.
(3) The landlord may now give the tenant 10 days written notice of the end of the tenancy agreement, and the tenant may avoid termination by paying the overdue rent within 5 days of receiving the notice.
(4) The agreement is now void because of the tenant’s breach of one its fundamental covenants, i.e., the requirement to pay rent.
974. Which of the following statements is TRUE with respect to security deposits in a commercial tenancy?
(1) The interest which accrues on a security deposit is always paid to the account of the landlord.
(2) The amount of a security deposit may be freely negotiated between the two parties to a commercial lease.
(3) The interest rate on a security deposit is restricted by the federal Interest Act.
(4) Security deposits must not exceed 150% of the monthly rent as a higher amount is unconscionable and therefore illegal.