Leasing and Property Management Practice Question

Question

A license applicant is studying a California practice scenario involving gross lease. What should a California real estate licensee understand? (Item 34)

Answer choices

1. A. It requires the licensee to favor the other party over the licensee’s own client.
2. B. Distinguish rent that includes most property expenses.
3. C. It is primarily a tax rule with no effect on brokerage practice.
4. D. It removes the need for written disclosure if the licensee believes the client already knows.

Correct Answer

B. Distinguish rent that includes most property expenses.

Explanation

The correct answer is B because gross lease requires candidates to distinguish rent that includes most property expenses. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.

Question details

• Difficulty: medium
• Domain: Leasing and Property Management
• Objective: gross lease

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