Property Management
A 'graduated rent lease' in NC provides for:
AA fixed monthly rent for the entire term
BRent that increases at specified intervals during the lease term✓ Correct
CRent based solely on the tenant's gross revenues
DA rent that decreases as the tenant improves the property
Explanation
A graduated (step-up) rent lease has pre-scheduled rent increases at specified intervals, often used in long-term commercial leases to account for anticipated increases in operating costs.
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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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