Property & OwnershipQuestion 101 of 120

A lease in which the tenant pays a fixed rent and the landlord pays most property expenses such as taxes and insurance is a:

a.Net lease
b.Gross lease
c.Percentage lease
d.Ground lease

Explanation

In a gross lease, the tenant pays a flat rent and the landlord covers most operating expenses, common in residential rentals. In a net lease, the tenant pays some or all of those expenses in addition to base rent.

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