Leases Flashcards
(8 cards)
1
Q
What are the five types of leases?
A
- Gross lease
- Net lease
- Percentage (overage) lease
- Variable (index) lease
- Ground lease
2
Q
What is a gross lease?
A
- Tenant pays a fixed rent
- Landlord pays expenses associated with the property
3
Q
What is a net lease?
A
- Tenant pays fixed rent + property costs
4
Q
What is a percentage (overage) lease?
A
- Tenant pays rent based on gross sales
5
Q
What is a variable (index) lease?
A
- Tenant pays specified rent increases based on a pre-determined index at set future dates
6
Q
What is a ground lease?
A
- Tenant leases land only and erects a building
7
Q
What is the assignment of a lease?
A
- When a lessee assigns to another party all of the leased property for the full remaining portion of the lease
8
Q
What is a sublease?
A
- When the lessee assigns less than the entire property or assigns all of the property for less than the full remaining period
