Property Management
A Michigan 'triple net' (NNN) lease requires the tenant to pay:
AOnly base rent
BBase rent plus property taxes, insurance, and maintenance expenses✓ Correct
CThree times the standard market rent
DBase rent plus only utilities
Explanation
A triple net (NNN) lease requires the tenant to pay base rent plus the three 'nets': property taxes, building insurance, and maintenance/repair costs. This shifts most operating costs to the tenant.
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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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