Hawaii Real Estate State Practice Exam

During a rental property’s conversion to a condominium, how do tenants' rights compare to the general public?

1. They have more rights

2. They have equal rights

3. They have fewer rights

4. They have exclusive rights

The correct answer is: They have fewer rights

During a rental property's conversion to a condominium, tenants' rights are diminished compared to the general public's rights. This occurs because the law typically provides certain protections to tenants during the conversion process, which may not be as favorable as the rights that new condo owners would enjoy. Tenants may face limitations such as being given notice to vacate in accordance with specific timelines and conditions, whereas the general public who buys a unit in a condominium has the right to ownership and occupancy without the restrictions faced by current tenants. Additionally, existing leases may be terminated as part of the conversion, further reducing the tenants' rights relative to those of new homeowners. Understanding the nature of this transition is crucial for both tenants and potential buyers. While tenants do have some rights during the conversion process, they are generally not as comprehensive or advantageous as the rights of individuals who enter the housing market at the time of the conversion.