A tenant pays a single monthly rent, and the landlord covers property taxes, insurance, and ordinary operating expenses. What type of lease is this?
Correct Answer
A) Gross lease
Gross lease is correct because the facts match a lease in which the tenant pays a fixed rent and the landlord generally pays most operating expenses. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
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- → For the Kentucky state portion, how should a candidate analyze tenant security deposits will be collected?
- → A licensee in Iowa encounters security deposits and prepaid rents are part of the management relationship. What should the licensee remember?
- → A commercial landlord offers a new tenant a rent-free period of three months at the beginning of a five-year lease. What is this incentive commonly called?
- → A commercial tenant wants to sublease half of her leased space to another business. The original lease is silent on subleasing. Can the tenant sublease the space?
- → What is a 'triple-net lease' (NNN) in commercial real estate?
- → A retail tenant has a percentage lease with a base rent of $2,500 per month and pays 5 percent of annual gross sales over a $400,000 breakpoint. The tenant's annual gross sales are $600,000. What is the tenant's total annual rent?
- → What is a 'ground lease' in commercial real estate?
- → A commercial lease includes a 'use clause' that restricts the tenant to operating a bookstore only. The tenant wants to add a coffee bar inside the bookstore. Can the tenant do this without the landlord's consent?
- → A commercial real estate broker is explaining lease types to a prospective tenant. All of the following are characteristics of a ground lease EXCEPT.
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