Types of Leases Flashcards
1
Q
What are the 4 different types of leases?
A
Gross lease, percentage lease, net lease, and lease option.
2
Q
What is a gross lease?
A
Rental agreement for the use of property where the tenant pays a fixed amount which does not change as a result of changes in the various expenses of the property.
3
Q
What is net lease?
A
The responsibility to pay taxes, insurance, and maintenance are incurred by lessee in addition to the monthly lease payment.
4
Q
What is lease option
A
Rental agreement indicating a tenant’s option to purchase a property during the term or at the end of the lease.
5
Q
What is the percentage lease?
A
Rental that is based on a percentage of the monthly or annual gross sales made on the premises.
