Property Management
What is a 'triple net lease' (NNN) commonly used in Rhode Island commercial real estate?
AA lease requiring three months' rent as security deposit
BA lease where the tenant pays base rent plus property taxes, insurance, and maintenance costs✓ Correct
CA lease with rent increases triple the inflation rate
DA lease covering three adjacent commercial spaces
Explanation
In a triple net (NNN) lease, the tenant pays base rent plus the three 'nets': property taxes (1st net), building insurance (2nd net), and maintenance/operating costs (3rd net). This shifts most property operating expenses to the tenant.
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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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