What type of lease is indicated if the lessor pays all property expenses?

Study for the Indiana RECP Comprehensive Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare to ace your exam!

The type of lease indicated when the lessor pays all property expenses is a gross lease. In this arrangement, the landlord or lessor is responsible for all operating expenses associated with the property, including property taxes, insurance, and maintenance costs. This setup simplifies the financial obligations for the tenant, as they typically pay a fixed rent amount without worrying about fluctuating additional expenses.

In contrast, a net lease places some of the financial responsibilities on the tenant, who would then cover certain expenses like property taxes or maintenance. A full lease doesn't have a specific recognized definition in real estate terminology; it's more of a generic term and could imply various types of leases without clarity. A modified lease, on the other hand, involves a combination where certain expenses are shared or negotiated between the lessor and lessee, which is different from the gross lease scenario where all expenses are the responsibility of the lessor.

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