Michigan Real Estate Exam Practice Question
A tenant has a commercial lease that requires the tenant to pay insurance, maintenance, and parking, but not repairs. What kind of lease does the tenant have?
Correct Answer: B
Rationale: A net lease requires the tenant to cover certain expenses in addition to rent, such as insurance, maintenance, and parking, which aligns with the lease terms described.
A gross lease typically includes all expenses in the rent, meaning the landlord covers costs like insurance and maintenance, which is not applicable here.
A percentage lease involves rent based on a percentage of the tenant's sales, which does not relate to the expenses specified in the question.
A ground lease is a long-term lease of land where the tenant typically builds on the property, which does not match the lease details provided.
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