New Jersey Real Estate Practice Exam Practice Question
What kind of lease would require the lessee to pay the taxes, insurance, repairs, and other operating expenses of the premises in addition to the regular rental payment?
Correct Answer: D
Rationale: A net lease requires the lessee to cover not just the rent but also additional expenses such as taxes, insurance, and maintenance costs. This arrangement benefits landlords by providing a predictable income stream while transferring various financial responsibilities to the tenant.
A percentage lease typically involves rent based on a percentage of sales, not extra costs. A gross lease includes all expenses in the rent, placing the full financial burden on the landlord. A graduated lease features rent increases at set intervals but does not specify additional expenses the lessee must cover. Therefore, only a net lease aligns with the requirement of paying both rent and operating expenses.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now