Property Management
A commercial net lease most often used in freestanding retail buildings where the tenant pays virtually all costs is called a:
AGross lease
BModified gross lease
CAbsolute net (bondable) lease✓ Correct
DPercentage lease
Explanation
An absolute net (bondable) lease requires the tenant to pay all costs including taxes, insurance, maintenance, roof and structural repairs, and even replacement. It transfers essentially all property risks to the tenant and is common in single-tenant net-leased retail properties.
People Also Study
Related Rhode Island Questions
- A net lease used in Rhode Island commercial properties typically requires the tenant to pay:Property Management
- A percentage lease used in Rhode Island retail properties typically requires the tenant to pay:Property Management
- What is a 'percentage lease' commonly used in Rhode Island retail properties?Property Management
- A Rhode Island property generates monthly gross rents of $5,000. Operating expenses including maintenance, taxes, and insurance are 40% of gross rents. What is the monthly NOI?Real Estate Math
- A Rhode Island commercial tenant requests to assign their lease to a new business. The lease requires landlord consent. The landlord must:Property Management
- The ADA requires commercial buildings built after 1993 to be:Fair Housing
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 Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →