Property Management
In South Carolina, what is a 'gross lease' versus a 'modified gross lease'?
AGross leases are for large properties; modified gross is for smaller ones
BIn a gross lease, the landlord pays all expenses; in a modified gross lease, some expenses are split or passed to the tenant✓ Correct
CModified gross leases are only used for commercial properties over 10,000 sq ft
DThey are the same thing with different names
Explanation
In a pure gross lease, the landlord pays all operating expenses. In a modified gross lease, the lease specifies that certain expenses (often utilities, janitorial, or maintenance above a base year) are passed through 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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