Housing Counselor Certification (HUD) Practice Exam

Under which condition may a tenant terminate a lease without financial repercussions?

1. Significant rent increase

2. Tenant's spouse is relocated for a military assignment

3. Owner plans to sell the property

4. Tenant is dissatisfied with maintenance

The correct answer is: Tenant's spouse is relocated for a military assignment

A tenant can terminate a lease without financial repercussions if their spouse is relocated for a military assignment due to the provisions established in the Servicemembers Civil Relief Act (SCRA). This federal law provides service members and their dependents with certain protections, including the right to terminate leases without penalty when called to active duty or when they are required to move for military orders. This is designed to support military families during relocations and ensure they are not burdened with ongoing obligations when facing unexpected changes due to military commitments. In contrast, significant rent increases may provide tenants with grounds to seek lease termination, but they typically are subject to specific local laws and may not automatically allow for penalty-free termination. An owner's intent to sell the property does not provide tenants with the right to terminate a lease without repercussions unless specifically stated in the lease agreement or governed by local tenant protection laws. Lastly, dissatisfaction with maintenance issues more likely leads to negotiations or requests for repairs, but it does not typically grant the right to terminate a lease without financial consequences unless it violates housing codes or the tenant’s rights under specific state laws.