A restaurant tenant pays $3,000 per month in base rent under a triple-net lease. Annual property taxes are $12,000, annual insurance is $3,600, and annual common-area maintenance is $6,000. What is the tenant's total monthly payment?
Correct Answer
A) $4,800
Monthly expenses: taxes $12,000/12 = $1,000; insurance $3,600/12 = $300; CAM $6,000/12 = $500. Total monthly = $3,000 + $1,000 + $300 + $500 = $4,800.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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