Property Management
A percentage lease, common in retail properties, requires the tenant to pay:
AA percentage of the property's appraised value annually
BBase rent plus a percentage of the tenant's gross sales above a breakpoint✓ Correct
CA percentage of the total building's operating costs
DRent equal to a percentage of surrounding comparable properties
Explanation
A percentage lease requires the tenant to pay base rent plus a percentage of their gross sales above a natural breakpoint. This is common in retail shopping centers and allows landlords to participate in tenants' business success.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
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.
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