Property Management
In a Michigan gross lease, the landlord is responsible for paying:
ANone of the operating expenses (tenant pays all)
BAll or most operating expenses including taxes, insurance, and maintenance✓ Correct
COnly exterior maintenance and the tenant pays all other expenses
DOnly property taxes while the tenant pays insurance and maintenance
Explanation
In a gross lease, the landlord pays all or most operating expenses (property taxes, insurance, maintenance, utilities) and the tenant pays a single gross rent amount. The landlord bears the risk of expense increases.
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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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