Property Management

In Utah, a commercial tenant on a net lease who fails to pay property taxes (for which they are responsible) may cause:

AThe landlord to automatically forgive the taxes
BA property tax lien to attach to the property, potentially threatening the landlord's ownership✓ Correct
CThe tenant to receive a credit toward future rent
DThe lease to automatically convert to a gross lease

Explanation

Under a net lease, the tenant is responsible for taxes. If taxes go unpaid, the county can impose a tax lien on the property. The landlord owns the property and is ultimately responsible to the taxing authority.

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