Under the lease, the tenant pays base rent and also reimburses the landlord for property taxes. What type of lease is this?
Correct Answer
C) Net lease
Net lease is correct because the facts match a lease in which the tenant pays rent plus one or more property expenses such as taxes, insurance, or maintenance. That is the best description of the relationship, right, or legal concept tested here.
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A tenant pays a single monthly rent, and the landlord covers property taxes, insurance, and ordinary operating expenses. What type of lease is this?
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A retail tenant pays base rent and is also responsible for taxes, insurance, and common-area maintenance charges. What type of lease is this?