Property Management
A net lease requires the tenant to pay base rent plus:
AOnly utilities
BSome or all of the property's operating expenses such as taxes, insurance, and maintenance✓ Correct
CA percentage of gross sales
DThe landlord's mortgage payment
Explanation
In a net lease, the tenant pays base rent plus some or all operating expenses. A triple-net (NNN) lease requires the tenant to pay taxes, insurance, and maintenance in addition to base rent, making it common in commercial real estate.
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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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