ContractsIntermediateAlaska Exam

In Alaska commercial real estate, a 'gross lease' means the tenant pays:

AAll operating expenses in addition to base rent, though this can vary by county
BA fixed rent that includes most or all operating expenses paid by the landlordCorrect
CA percentage of gross revenues only
DOnly utility costs, with no base rent

Why A fixed rent that includes most or all operating expenses paid by the landlord Is Correct

Answer B: A fixed rent that includes most or all operating expenses paid by the landlord

In a gross lease, the tenant pays a single fixed rent amount and the landlord pays most or all of the operating expenses (taxes, insurance, maintenance). This is more tenant-friendly and simpler to budget, but gross rents are typically higher to compensate the landlord for bearing the operating costs.

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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