A lease in which the tenant pays some (or all) operating expenses associated with the real estate is called a ______ lease.

Study for the Appraiser III Exam. Unlock comprehensive flashcards and multiple choice questions, each with hints and detailed explanations. Prepare to excel in your exam!

The correct terminology for a lease where the tenant pays some or all operating expenses related to the property is a “Net lease.” In a net lease, the tenant is typically responsible for paying not only the rent but also additional expenses such as property taxes, insurance, and maintenance costs.

In distinction, a "Gross lease" is one in which the landlord pays all operating expenses, and the tenant only pays a fixed rent amount. The term "Total lease" is not commonly used in the context of real estate leases, and while a "Fixed lease" might imply a set amount for rental payments, it does not specifically address the allocation of operating expenses as pertains to the tenant's responsibilities.

Thus, recognizing the specific financial structure of a net lease is crucial in real estate, as it clarifies the division of financial responsibilities between landlords and tenants.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy