Property Management
A 'gross lease' for commercial property in NC means:
AThe tenant pays base rent plus all operating expenses
BThe landlord pays all operating expenses and the tenant pays a fixed rent✓ Correct
CThe tenant pays rent based on a percentage of gross sales
DThe lease has no fixed term
Explanation
In a gross lease, the landlord pays operating expenses (taxes, insurance, maintenance) and the tenant pays a single fixed rent, making it simpler but typically higher than net lease 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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