Property Management
What is a 'common area maintenance' (CAM) charge in commercial property leasing?
AA fee for using the building's amenities
BThe tenant's proportionate share of costs to maintain shared building areas like lobbies, hallways, parking lots, and landscaping✓ Correct
CA surcharge for after-hours access
DA fee for parking garage maintenance only
Explanation
CAM charges represent the tenant's proportionate share of operating expenses for common areas. The tenant's share is typically based on their leased percentage of the total rentable building area.
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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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