Property Management
A New Mexico commercial tenant under a gross lease pays:
ABase rent plus all operating expenses separately
BOne all-inclusive rent payment, with the landlord responsible for paying operating expenses (taxes, insurance, maintenance) from the rent received✓ Correct
COnly a percentage of gross sales
DOperating expenses only
Explanation
Under a gross (full-service) lease, the tenant pays a single fixed rent amount and the landlord is responsible for all operating expenses. This provides the tenant with cost certainty but landlords typically build expense estimates into the rent.
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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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