Contracts
A North Dakota commercial lease with an 'escalation clause' provides that rent:
ACan decrease during the lease term
BIncreases automatically at set intervals, often tied to CPI, operating expense increases, or a fixed percentage✓ Correct
CRemains fixed for the entire lease term
DIs renegotiated annually by mutual agreement
Explanation
Escalation clauses in commercial leases provide for automatic rent increases over time, protecting the landlord from inflation. Increases may be tied to the Consumer Price Index (CPI), a fixed percentage, or pass-through of operating expense increases. This protects the landlord's real return over a long lease term.
Related North Dakota Contracts Questions
- A North Dakota purchase contract that provides a buyer the 'right of first refusal' in the contract means the seller must:
- Under North Dakota law, which of the following CANNOT be included in a valid purchase agreement?
- A North Dakota listing expires without a sale. If the owner sells to a buyer who was introduced to the property by the broker during the listing period, within the 'protection period,' the broker:
- A North Dakota property owner offers to sell their property by posting a sign in the yard with the price. Under contract law, this sign is considered:
- Consideration in a real estate contract can be:
- A North Dakota agent who prepares a purchase agreement is performing which type of service?
- A North Dakota seller who accepts an offer 'with modifications' has effectively:
- Which type of listing agreement gives only one broker the right to sell the property and requires a commission even if the owner finds the buyer?
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →