Virginia State Real Estate Exam Practice Question

A lease where tenant pays taxes, insurance, and maintenance is called:

Correct Answer: A

Rationale: A net lease requires the tenant to pay not only rent but also additional costs such as taxes, insurance, and maintenance, making it financially beneficial for landlords.

Option B, a gross lease, involves the landlord covering all expenses, leaving the tenant with a single rent payment.

Option C, a ground lease, typically pertains to leasing land only, where the tenant may build but does not cover other operational expenses.

Option D, a percentage lease, involves rent based on a percentage of the tenant's sales, which does not include additional costs. Each option has distinct characteristics that clarify why a net lease is the appropriate choice.

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