Tennessee Real Estate Exam Practice Question
A tenant is responsible for parking-lot repairs. What kind of lease does the tenant have?
Correct Answer: A
Rationale: A net lease requires the tenant to cover additional expenses beyond rent, such as maintenance and repairs, including parking-lot repairs, making it the best fit for this scenario.
In contrast, a gross lease typically includes all expenses within the rent, meaning the landlord would handle repairs. A ground lease involves leasing land for a long term, often for development, but does not inherently assign repair responsibilities. A percentage lease ties rent to a percentage of revenue, commonly used in retail, but does not specify repair obligations. Thus, the net lease accurately reflects the tenant's responsibility for repairs.
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