(5) Kinds Of Leases

Question 1

Lease where the building typically needs to be erected (built) on a piece of land by the lessee

Answer 1

Ground Lease

Question 2

Lessee pays a flat rental amount, and lessor pays for all cost (operating/maintaining the property and real property taxes)

Answer 2

Gross Lease

Question 3

A type of lease usually used for businesses in shopping malls where there is a fixed minimum rate, plus a percentage of their gross revenue

Answer 3

Percentage Lease

Question 4

Lease where the lessee pays the rent, plus all the property expenses normally paid by seller (taxes, insurance, utilities)

Answer 4

Net Lease