Property Management
What is a 'net lease' in commercial property management?
AA. A lease where the tenant pays only base rent and nothing else
BB. A lease where the tenant pays base rent plus some or all operating expenses (taxes, insurance, maintenance)✓ Correct
CC. A lease that nets the landlord a guaranteed profit
DD. A lease for property that has been cleared of all liens
Explanation
A net lease requires the tenant to pay base rent plus some or all property operating expenses. Types include single net (tenant pays property taxes), double net (plus insurance), and triple net/NNN (plus maintenance).
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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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