Property Management
A NC commercial lease that includes a 'CPI adjustment' (Consumer Price Index) is providing for:
AA fixed rent throughout the term
BRent adjustments tied to inflation as measured by the CPI✓ Correct
CAdjustments based on the tenant's sales volume
DAdjustments based on the property's assessed value
Explanation
A CPI adjustment clause in a commercial lease allows the rent to increase (or decrease) periodically in proportion to changes in the Consumer Price Index, protecting the landlord from inflation.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Earnest MoneyA 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.
Math Concepts
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