Illinois Real Estate Exam Practice Question
A tenant has a commercial lease that requires that the tenant pay taxes, insurance, maintenance, and parking lot repairs. What kind of lease does the tenant have?
Correct Answer: A
Rationale: A net lease requires tenants to pay not only rent but also additional expenses such as taxes, insurance, maintenance, and repairs, which aligns with the tenant's obligations in this scenario.
In contrast, a gross lease typically includes these costs in the rent, placing the financial burden on the landlord. A ground lease involves leasing land for a long term, where the tenant typically builds on the property, but does not relate to the payment of operating expenses. A percentage lease bases rent on a percentage of the tenant's sales, which does not apply here. Thus, the tenant's responsibilities clearly indicate a net lease arrangement.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now