Property Management
What is 'gross lease' and how does it differ from a 'net lease' in Nevada commercial real estate?
AGross and net leases are the same in Nevada
BIn a gross lease, the landlord pays all operating expenses and the tenant pays a fixed rent; in a net lease, the tenant pays base rent plus some or all operating expenses✓ Correct
CA gross lease applies only to residential rentals; net leases are for commercial
DA gross lease is prohibited by Nevada commercial real estate regulations
Explanation
Under a gross lease (full-service lease), the tenant pays one all-inclusive rent and the landlord handles taxes, insurance, and maintenance. Under a net lease, operating expenses are passed through to tenants.
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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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