Property Management
Which type of lease provides the tenant with a fixed annual rent with no adjustments for operating expenses, making it most favorable to the tenant?
ATriple net lease
BModified gross lease
CPercentage lease
DGross lease✓ Correct
Explanation
A gross lease (or full-service gross lease) provides the most predictable cost for the tenant—one fixed rent amount with the landlord absorbing all operating expense increases, making it most favorable to the tenant.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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