Property Management
What is a 'net lease' (NNN lease) in Delaware commercial real estate?
AA lease where the landlord pays all net operating expenses
BA lease where the tenant pays base rent plus their share of property taxes, insurance, and common area maintenance (CAM) charges✓ Correct
CA lease based on the net profit of the tenant's business
DA lease with no security deposit requirement
Explanation
A triple net lease (NNN) requires the tenant to pay base rent plus property taxes, building insurance, and maintenance/repair costs. It shifts operating expense risk to the tenant.
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Key Terms to Know
Proration
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Earnest MoneyA 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.
Math Concepts
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