In a lease where the landlord covers most major property expenses and the tenant pays rent, the lease is known as a gross lease.

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Multiple Choice

In a lease where the landlord covers most major property expenses and the tenant pays rent, the lease is known as a gross lease.

Explanation:
A gross lease is when the landlord covers most of the operating costs of the property, and the tenant pays a single rent amount. In the described arrangement, the landlord pays major property expenses while the tenant simply pays rent, which fits this model exactly. The rent is the tenant’s only regular payment, with other costs like taxes, insurance, and maintenance being the landlord’s responsibility. In contrast, a net lease shifts some or all of those operating costs to the tenant, and a modified gross lease involves sharing or adjusting which expenses are paid by each party. So the scenario aligns with a gross lease because the landlord bears the major property expenses and the tenant’s obligation is just the rent.

A gross lease is when the landlord covers most of the operating costs of the property, and the tenant pays a single rent amount. In the described arrangement, the landlord pays major property expenses while the tenant simply pays rent, which fits this model exactly. The rent is the tenant’s only regular payment, with other costs like taxes, insurance, and maintenance being the landlord’s responsibility.

In contrast, a net lease shifts some or all of those operating costs to the tenant, and a modified gross lease involves sharing or adjusting which expenses are paid by each party. So the scenario aligns with a gross lease because the landlord bears the major property expenses and the tenant’s obligation is just the rent.

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