Specialty Areas

Question 1

Commercial Property

Answer 1

Non-residential (i.e., not apartments) income-producing property (e.g., office building, gas station, restaurant, shopping center, hotel/motel, and parking lot)

Question 2

Gross/Fixed Lease

Answer 2

Tenant pays fixed rent; landlord pays all expenses (utilities taxes, or special assessments); typically used in residential properties but can be used for commercial or industrial properties

Question 3

Net Lease

Answer 3

Tenant pays fixed rent plus expenses (utilities, taxes, or special assessments); most common for commercial properties

Question 4

Percentage Lease

Answer 4

Tenant pays percentage of income as rent

Question 5

Index Lease

Answer 5

Rent is adjusted based on an economic index

Question 6

Sale-leaseback

Answer 6

Converts equity to capital without giving up possession

Question 7

Constructive Eviction

Answer 7

The lease may be terminated if the lessee (tenant) must vacate due to the lessor’s (landlord’s) act or failure to act; wrongful eviction

Question 8

Actual Eviction

Answer 8

Used by landlords to evict tenants who are in breach of their lease

Question 9

Sale of a Business (including goodwill and assets)

Answer 9

Many states require a broker’s license to offer for sale for another fee