Property Management
A Virginia commercial tenant on a triple net (NNN) lease is responsible for:
ABase rent only; the landlord pays all operating expenses
BBase rent plus their proportionate share of property taxes, insurance, and maintenance✓ Correct
COnly utility costs in addition to rent
DAll property costs including the mortgage payment
Explanation
Under a triple net (NNN) lease, the tenant pays base rent plus three 'nets': property taxes, building insurance, and maintenance/operating expenses. This shifts most property costs 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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