Free Pennsylvania Real Estate Practice Exam Practice Question
In a lease, which of the following statements describes an escalation clause?
Correct Answer: A
Rationale: An escalation clause specifically refers to a provision within a lease agreement that allows for rent increases under specified conditions, making option A accurate.
Option B incorrectly describes a percentage lease, which involves rent based on sales, not an escalation clause. Option C misinterprets the function of an escalation clause; it does not relate to maintenance of fixtures but rather to rent adjustments. Lastly, option D pertains to lease termination due to non-payment, which is unrelated to the purpose of an escalation clause. Thus, option A is the only choice that correctly defines the function of an escalation clause in a lease.
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