Free practice questions · Course 3
Landlord-Tenant Considerations Practice Questions
Residential Tenancies Act basics and their impact on property transactions. Below are 5 free sample questions from our 59-question Landlord-Tenant Considerations bank. Each comes with the correct answer and a full explanation.
Question 1 of 5
Which option correctly describes the cure period for an N4 (non-payment of rent) for a monthly residential tenancy?
- A7 days to pay or vacate
- B10 days to pay or vacate
- C14 days to pay or vacate
- D30 days to pay or vacate
Why C is correct
Section 59 of the RTA provides 14 days from service for tenants of monthly or longer tenancies to pay outstanding rent or vacate. For daily or weekly tenancies, the cure period is 7 days. Paying the arrears in full voids the N4.
Question 2 of 5
Bohdan's annual rent increase notice is served on March 1 for an increase to take effect on June 1, an increase of 6 percent. The current guideline is 2.5 percent. The unit is in a rent-controlled building and Bohdan has not received LTB approval for an above-guideline increase. What is the legal effect?
- AThe increase is valid because the notice period exceeds 90 days
- BThe increase is void to the extent it exceeds the guideline; the tenant only owes the guideline-approved amount
- CThe full 6 percent applies because Bohdan gave written notice
- DThe tenant must pay 6 percent and apply to recover the difference
Why B is correct
Sections 116 and 120 of the RTA limit annual increases to the published guideline (2.5 percent in this scenario). Increases beyond the guideline require LTB approval under section 126. Without that approval, the excess portion is unenforceable, and any amount collected over the guideline is recoverable by the tenant.
Question 3 of 5
Faisal accepted a $300 cash payment from a prospective tenant, Olive, described as a 'damage deposit.' Olive moves in. Which statement is correct under the RTA?
- AThe deposit is enforceable because Olive paid it voluntarily
- BThe deposit is illegal; only a rent deposit equal to one month's rent and key deposits at replacement cost are permitted
- CThe deposit becomes lawful if Faisal places it in a separate trust account
- DThe deposit must be returned only if Olive has no damage at move-out
Why B is correct
Section 105 of the RTA limits the security a landlord may require to a last month's rent deposit and a refundable key deposit equal to the actual replacement cost. Damage, cleaning, pet, or similar deposits are prohibited. A tenant may apply to the LTB to recover an illegal deposit, plus interest.
Question 4 of 5
Section 106 of the RTA addresses interest on a rent deposit (last month's rent). Which statement BEST describes the landlord's interest obligation?
- ANo interest is payable on residential rent deposits
- BInterest must be paid annually at a rate equal to the rent increase guideline in effect when the interest is due
- CInterest must be paid at the prime rate plus 2 percent
- DInterest is owed only when the tenancy ends
Why B is correct
Section 106(6) of the RTA requires the landlord to pay interest on the rent deposit annually at the guideline rate that is in effect when payment becomes due. The landlord may also adjust the deposit so it remains equal to the current monthly rent.
Question 5 of 5
Which scenario would result in a tenancy NOT being protected by the RTA, even though it appears residential at first glance?
- AA tenant rents a unit in a triplex where the owner does not live in the building
- BA tenant pays $400 monthly to occupy a finished basement and shares a kitchen and bathroom with the owner of the home
- CA tenant has a one-year fixed-term lease in a private apartment building
- DA tenant rents a basement unit with a separate entrance and full kitchen, separated from the owner's residence
Why B is correct
Under section 5(i) of the RTA, when a tenant must share a kitchen or bathroom with the owner or the owner's family member who lives in the same dwelling, the unit is excluded from the Act. Self-contained units, including basement apartments with their own facilities, remain covered.
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