Affiliate Broker Tennessee (TN PSI) National Practice Exam `

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Study for the Affiliate Broker Tennessee National Exam. Practice with flashcards and multiple choice questions, with hints and explanations. Prepare well for your licensing exam!

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When Jennifer sells her rental property to Eliot, what must she do regarding the tenants?

Evict the tenants before selling
Negotiate new leases
Notify the tenants of the change in ownership
Keep the tenants unaware of the sale

The correct answer is: Notify the tenants of the change in ownership

When Jennifer sells her rental property to Eliot, it is essential for her to notify the tenants of the change in ownership. This notification is important as it formally informs the tenants that their landlord has changed and provides them with the information necessary to understand who to communicate with regarding their lease agreements, rent payments, and any property issues going forward. Tenants have the right to know about the ownership change since it can impact their lease terms and their rights as tenants. This notification also helps to ensure a smooth transition of management for the property and allows the new owner, Eliot, to establish communication with the tenants. The other actions, such as evicting the tenants before selling or negotiating new leases, are not requirements and can be seen as more drastic measures that might not be necessary depending on the nature of the lease agreements in place. Keeping the tenants unaware of the sale would be unethical and potentially illegal, violating tenant rights to be informed about their living situation.