On January 1, 2000, Red leased Whiteacre from Blue for a period of 10 years. On January 1,2005 , the state took title to Whiteacre under proper eminent domain proceedings. Which of the following statements are correct concerning the rights of Red? I. Red may continue to occupy Whiteacre, as eminent domain proceedings will not affect lessees. II. Red may not continue to occupy Whiteacre, is relieved from his obligation to pay rent to Blue, and will not share in the condemnation award. III. Red may not continue to occupy Whiteacre, and is entitled to share in the condemnation award based on the value of the remaining five years less rent that would have been paid during that period.
A. Only I. is correct.
B. Only II. is correct.
C. Only III. is correct.
D. None of the above are correct.
Choose A, B, C or D as your solution.
C