Real Estate Property Management 2

Question 1

In a triple-net (NNN) lease, the tenant is responsible for:

Accepted Answer

Base rent plus property taxes, insurance, and maintenance

Answer

A triple-net lease requires the tenant to pay base rent plus the three 'nets': property taxes, building insurance, and maintenance/repairs.

Question 2

A percentage lease requires the tenant to pay:

Accepted Answer

Base rent plus a percentage of gross sales above a breakpoint

Answer

Percentage leases are common in retail settings; the tenant pays a minimum base rent plus a percentage of gross sales that exceed a specified natural breakpoint.

Question 3

CAM (Common Area Maintenance) charges in a commercial lease are used to cover:

Accepted Answer

Shared costs for lobbies, parking lots, landscaping, and hallways

Answer

CAM charges allocate each tenant's proportionate share of maintaining shared spaces in multi-tenant properties such as shopping centers and office buildings.

Question 4

An estoppel certificate in commercial real estate is a document signed by a tenant that:

Accepted Answer

Certifies the current lease terms and status as accurate

Answer

An estoppel certificate is a binding statement confirming lease terms, payment status, and any disputes, commonly required by lenders or buyers during due diligence.

Question 5

Constructive eviction occurs when a landlord:

Accepted Answer

Fails to maintain the property to a habitable standard, effectively forcing the tenant to leave

Answer

Constructive eviction happens when a landlord's failure to maintain habitable conditions makes the premises unfit, allowing the tenant to vacate and terminate the lease.

Real Estate Practice Test

Real Estate Practice Test

Real Estate Property Management 2