Property Management
What is a net lease in commercial real estate?
AA lease with no security deposit
BA lease where the tenant pays base rent plus some or all operating expenses✓ Correct
CA lease where the landlord covers all expenses
DA percentage-based rent arrangement
Explanation
A net lease requires the tenant to pay base rent plus some or all operating expenses (taxes, insurance, maintenance). Types include single net (N), double net (NN), and triple net (NNN) leases.
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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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