Massachusetts Real Estate License Practice Test

Which legal mechanism gives tenants the right to purchase their homes after a condo conversion?

1. First Right of Refusal

2. Negative Easement

3. Permissive Use

4. Transfer of Title

The correct answer is: First Right of Refusal

The legal mechanism that grants tenants the right to purchase their homes after a condo conversion is known as the First Right of Refusal. This provision allows existing tenants to have the first opportunity to buy their unit before it is offered to outside buyers. The purpose of this mechanism is to provide security to tenants, ensuring they have a chance to continue living in their homes as owners rather than facing displacement. In the context of a condo conversion, when a property is transformed from rental units to condominiums, the First Right of Refusal becomes particularly important. It typically requires the landlord or property owner to notify the tenants if they decide to sell their units, allowing them to match the offer or express their interest in purchasing. The other options are distinct legal concepts unrelated to the tenant's purchase rights in this scenario. A Negative Easement pertains to restrictions on property use rather than purchasing rights, Permissive Use relates to the allowance of certain uses of property without an easement, and Transfer of Title refers to the act of transferring ownership of a property, which does not specifically address the rights of tenants in condo conversions.