Property Management
A Michigan property manager negotiating a commercial lease should understand that a 'triple net' (NNN) lease requires the tenant to pay:
ABase rent only, with the landlord paying all expenses
BBase rent plus property taxes, insurance, and maintenance/operating expenses✓ Correct
CBase rent plus one additional expense chosen by the landlord
DAll property expenses except capital improvements
Explanation
A triple net (NNN) lease requires the tenant to pay base rent plus the three 'nets': property taxes, property insurance, and operating/maintenance costs. The landlord's responsibility is primarily structural and capital repairs.
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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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