If a lease requires the tenant to pay certain expenses such as taxes, maintenance or insurance in addition to the rent, the lease is classified as a(n):
Correct Answer
B) net lease.
A net lease is the correct classification because, by definition, it requires the tenant to pay base rent plus some or all property operating expenses such as real estate taxes, building insurance, and maintenance costs — exactly as described in the question. The three primary variants are the single net (N), double net (NN), and triple net (NNN) lease, each adding another layer of expense responsibility to the tenant, and all of them fit the description in the question. The correct answer is B, not C as stated in the source explanation, which appears to contain a mislabeling error.
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