A management company takes over the management of an apartment complex. What happens to the existing tenants' leases?

This choice is incorrect because tenants do not automatically gain the right to cancel their leases simply due to a management change. Leases are contracts, and tenants are bound by the terms unless there is a specific clause allowing cancellation, which is not standard practice during a management transfer.

This option is incorrect as leases are not canceled automatically when a new management company takes over. The legal obligations to honor existing leases remain with the new management, ensuring that tenants maintain their rights and stability in their housing situation.

This choice is misleading because while a management company may have certain rights, they cannot unilaterally cancel existing leases without valid legal grounds or specific provisions in the lease agreements allowing for such an action. Tenants' rights under their leases must be respected regardless of management changes.