ContractsIntermediateAlaska Exam

In Alaska, a 'net-net-net' or 'triple net' (NNN) lease most commonly provides that the tenant pays:

AOnly base rent with all expenses included
BBase rent plus property taxes, insurance, and maintenance expensesCorrect
COnly operating expenses, with no base rent
DA percentage of gross sales in lieu of fixed rent, as a general rule

Why Base rent plus property taxes, insurance, and maintenance expenses Is Correct

Answer B: Base rent plus property taxes, insurance, and maintenance expenses

A triple-net (NNN) lease requires the tenant to pay base rent plus all three major operating expense categories: property taxes (first N), property insurance (second N), and maintenance/repairs (third N). This arrangement provides the landlord with a predictable net income stream with minimal management responsibility.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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