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.
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Under the lease, the tenant pays base rent and also reimburses the landlord for property taxes. What type of lease is this?
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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?