asked 160k views
4 votes
If a lessee pays a fixed amount of rent plus all expenses, the lease is known as a:

A. graduated lease
B. net lease
C. gross lease
D. percentage lease

asked
User Hyelim
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7.6k points

1 Answer

4 votes

Final answer:

The correct answer is a net lease, where the lessee pays both a fixed rent and all related property expenses.

Step-by-step explanation:

If a lessee pays a fixed amount of rent plus all expenses, the lease is known as a net lease. This type of lease agreement typically involves the tenant or lessee paying not only the rent but also some or all of the property expenses such as property taxes, insurance, and maintenance costs.

In contrast, a graduated lease would involve rent increases over time, a gross lease includes most or all property expenses in the rent without extra charges, and a percentage lease requires the lessee to pay a base rent plus a percentage of their revenue.

answered
User JVK
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9.3k points
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