Property Management
A net lease requires the tenant to pay:
AOnly base rent with all expenses included
BBase rent plus some or all operating expenses such as taxes, insurance, and maintenance✓ Correct
COnly utilities, with landlord paying all other expenses
DA percentage of gross sales as the full rent
Explanation
Net leases shift some or all operating expenses to the tenant in addition to base rent. A triple net (NNN) lease requires the tenant to pay base rent plus property taxes, insurance, and maintenance costs.
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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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