Property Management
When a NC commercial tenant's lease includes a 'co-tenancy clause,' rent reduction may be triggered when:
AThe tenant adds a co-signer to the lease
BA key anchor tenant vacates the center, reducing foot traffic that the lease performance depends on✓ Correct
CTwo tenants share the same space
DThe tenant sublets part of the space
Explanation
A co-tenancy clause allows smaller tenants to reduce rent or terminate the lease if a key anchor tenant vacates, recognizing that their business performance depends on the traffic generated by the anchor.
People Also Study
Related North Carolina Questions
- A NC commercial tenant who assigns their lease to a new business transfers:Property Management
- Under NC law, a commercial landlord who accepts rent from a holdover tenant (after the lease expires without renewal) creates:Property Management
- A NC commercial tenant who has exclusive use rights in their lease (e.g., 'the only hair salon in the shopping center') is protected by:Property Management
- When a NC lease includes an 'indemnification clause,' the tenant typically agrees to:Property Management
- Annual rent on a commercial lease is $24 per square foot. The space is 2,500 square feet. What is the monthly rent?Real Estate Math
- An NC commercial lease is $22 per square foot NNN for 3,200 sq ft. Annual base rent is:Real Estate Math
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.
Study This Topic
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →