Property Management
Which type of lease requires the tenant to pay base rent plus a portion of operating expenses such as taxes, insurance, and maintenance?
AGross lease
BNet lease✓ Correct
CPercentage lease
DGround lease
Explanation
A net lease requires the tenant to pay base rent plus some or all operating expenses. A triple net (NNN) lease requires the tenant to pay all three: taxes, insurance, and maintenance.
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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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