In which lease arrangement does the buyer also pay for rent and additional expenses?

Prepare for the Colibri Real Estate Exam. Study with flashcards and multiple-choice questions, each with detailed hints and explanations. Get ready for your exam!

In a net lease arrangement, the tenant (or buyer) is responsible not only for paying the rent but also for covering additional expenses associated with the property. These expenses often include property taxes, insurance, and maintenance costs, which in the context of commercial real estate, can lead to a more variable total cost for the tenant. This structure allows landlords to keep their rental rates lower while still ensuring they receive compensation for the various costs tied to ownership and maintenance of the property.

In contrast, a gross lease typically includes these expenses in the rent, meaning the landlord absorbs the extra costs, and the tenant pays a single fixed amount. A percentage lease usually ties rent to the tenant's sales revenue, making it more variable based on performance. The term "standard lease" is vague and does not refer to a specific type of lease agreement. Each of these other options has distinct characteristics that do not align with the requirement of the buyer paying both rent and additional expenses, thereby affirming the net lease as the accurate choice for this scenario.

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