In a Net Lease, the Tenant Is Responsible for Paying

question 13

Multiple Choice

In a net lease, the tenant is responsible for paying a clearly defined portion of the property's operating expenses. Based on your understanding of the standard definitions of "netness" in commercial leases, the tenant is responsible for which of the following in a net-net lease?

• A) No operating expenses
• B) Only property taxes
• C) Both property taxes and insurance
• D) All operating expenses

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Definitions:

Fine-Grained Sediment

Sediment that consists of tiny particles and fragments, such as clay or silt, which are often transported by water or wind and deposited in calm environments.

Permeability

Permeability is a measure of how easily a fluid can move through a porous material, such as soil or rock, indicating the material's ability to transmit water or other fluids.

Compacted Clay

Clay soil that has been compressed, often leading to reduced water infiltration and aeration.

Pore Spaces

Voids or gaps between soil particles or rock, which can hold air or water and are critical for fluid flow and organisms.