If a lease requires the tenant to pay certain expenses such as taxes, maintenance or insurance in addition to the rent, the lease is classified as a(n):
Question & Answer
Review the question and all answer choices
gross lease.
A gross lease is incorrect because in this type of lease, the tenant pays only a fixed rent amount, and the landlord is responsible for all property expenses including taxes, insurance, and maintenance.
net lease.
A net lease is incorrect because while it does require the tenant to pay property expenses in addition to base rent, it doesn't specifically tie these additional payments to a percentage of the tenant's income as described in the question.
percentage lease.
estate for will.
An estate for will is incorrect because this refers to a type of property ownership interest that takes effect upon death through a will, which is completely unrelated to lease classifications or payment structures.
Why is this correct?
A percentage lease is correct because it requires the tenant to pay rent plus additional expenses (like taxes, maintenance, or insurance) that are often calculated as a percentage of the tenant's gross sales or business revenue. This structure aligns with the description in the question.
Continue Learning
Explore this topic in different formats
More Practice of Real Estate Videos
Continue learning with related video lessons
What is the max civil penalty per violation in Minnesota?
2:52 • 0 views
If an auditor visits a broker's office in Ohio, how many years of records are required?
2:47 • 0 views
Is commingling legal in Mississippi?
2:50 • 0 views
Utah license law has three levels of licensure. What are they?
2:03 • 0 views
Georgia has real estate license reciprocity agreements with which states?
2:44 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.