Contracts
A Nebraska commercial lease that contains a 'rent escalation clause' provides for:
AThe tenant to decrease rent if business declines
BPeriodic rent increases, often tied to CPI, a fixed percentage, or renegotiation✓ Correct
CThe landlord to decrease rent if the building depreciates
DAutomatic lease renewal at the same rent
Explanation
Rent escalation clauses provide for rent increases during the lease term — protecting landlords from inflation. They may be tied to the Consumer Price Index (CPI), a fixed annual percentage, or scheduled step 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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