Property Management
A gross lease requires the tenant to pay:
ABase rent plus all property expenses such as taxes, insurance, and maintenance
BOnly a flat rent amount while the landlord pays operating expenses✓ Correct
CRent based on a percentage of the tenant's gross sales
DNo rent during the first year of occupancy
Explanation
Under a gross lease, the tenant pays a flat rent and the landlord is responsible for operating expenses such as property taxes, insurance, and maintenance.
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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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