Housing Counselor Certification (HUD) Practice Exam

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Prepare for the Housing Counselor Certification (HUD) Exam. Study with flashcards and multiple choice questions featuring hints and explanations for each question. Get ready for your certification!

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If a tenant's apartment building is sold, what must the new landlord do regarding the existing lease?

Increase the rent immediately
Honor the existing lease
Negotiate a new lease
Evict the tenants

The correct answer is: Honor the existing lease

When an apartment building is sold, the new landlord is required to honor the existing lease agreements with the tenants. This means that all the terms and conditions laid out in the leases remain in effect, and the new owner must abide by them until the lease expires. Existing tenants are protected under the provisions of the lease, and their rights are not impacted by the change in ownership. This principle is grounded in the legal concept of "assignment of leases," whereby the new property owner steps into the shoes of the previous landlord and takes on the obligations as well as the rights associated with the leases. Thus, tenants can continue to reside in their apartments under the same conditions they agreed to with the previous landlord, ensuring stability and predictability for those living in the property. In this context, the other choices do not reflect legal requirements. For instance, raising the rent immediately would be a breach of the lease unless it's specified in the lease itself. Similarly, negotiating a new lease can only occur upon the expiration of the existing lease or if both parties agree to it. Evicting tenants simply due to a change in ownership is not permissible unless there is a valid legal reason to do so.