Property Management
What is a 'percentage lease' and in what Nevada real estate contexts is it used?
AA lease where the rent is a fixed percentage of the mortgage payment
BA retail lease where the tenant pays a base rent plus a percentage of their gross sales above a specified breakpoint — common for retail tenants in Nevada shopping centers and casino retail✓ Correct
CA lease where the landlord receives a percentage of the property's appreciation
DA lease form used only in Nevada gambling establishments
Explanation
Percentage leases are common in retail. The tenant pays base rent (minimum rent) plus a percentage of gross sales above a natural breakpoint (where base rent ÷ percentage rate = breakpoint).
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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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