A retail tenant pays base rent and is also responsible for taxes, insurance, and common-area maintenance charges. What type of lease is this?
Correct Answer
C) Triple-net lease
Triple-net lease is correct because the facts match a lease in which the tenant pays rent plus property taxes, insurance, and maintenance or common-area expenses. That is the best description of the relationship, right, or legal concept tested here.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Leasing Property Management Question
Background Knowledge for Leasing Property Management
Real World Application in Leasing Property Management
Common Mistakes to Avoid on Leasing Property Management Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
More Leasing Property Management Questions
A Kentucky licensee encounters the principal broker pays property expenses. What should the licensee remember?
In Iowa, a property management agreement is signed. Which statement is correct?
Which Kentucky rule applies when a client hires the brokerage for property management?
In Kentucky, the client wants transaction accounting. Which statement is correct?
A Kentucky licensee encounters property management money is received. What should the licensee remember?
- → 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.
- → A retail tenant signs a lease that requires paying a base rent of $3,000 per month plus a percentage of gross sales exceeding $500,000 annually. What type of lease is this?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
How to Review Real Estate Leasing Questions Without Mixing Residential and Commercial Rules
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate...
How to Review Real Estate Leasing Questions Without Mixing Residential and Commercial Rules: A Practical Study Loop
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for review real estate...
Previous Question
Under the lease, the tenant pays base rent and also reimburses the landlord for property taxes. What type of lease is this?
Next Question
A shopping-center tenant pays monthly base rent and additional rent equal to a percentage of retail sales above a break point. What type of lease is this?