Final answer:
Under a reverse mortgage with a tenure payment option, the remaining borrower can continue living in the property and receiving payments as long as they occupy the home as their primary residence. The borrower must comply with the occupancy terms to maintain the agreement. Termination guidelines require the property to be vacated, with violations resulting in additional rent and damages.
Step-by-step explanation:
When only one reverse borrower lives and continues to occupy the property under terms of the tenure option, the agreement remains in effect. The tenure payment option allows the remaining borrower to receive fixed payments for as long as they occupy the home as the primary residence.
If the terms of the agreement are upheld, including occupying the property as set out in the reverse mortgage contract, the borrower can continue to live in the home without changes to the tenure payments.
Possession of the property and compliance with the terms of occupation are key to maintaining the conditions of the reverse mortgage tenure option.
In the event of the termination of a reverse mortgage, guidelines state that the property must be vacated, and all possessions should be removed.
In this situation, if the borrower does not vacate the property at the termination of the mortgage, they would be responsible for additional rent and potential damages. This could include losses incurred by the owner due to the inability to rent to new residents.