Property Management
When managing a commercial property in Michigan, the most common lease type where the tenant pays base rent plus a share of operating expenses is called:
AGross lease
BNet lease✓ Correct
CPercentage lease
DGround lease
Explanation
A net lease (or triple net lease) requires the tenant to pay base rent plus some or all of the property's operating expenses (taxes, insurance, maintenance). This is common in Michigan commercial real estate.
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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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