Leasing and Property Management Practice Question
Question
A salesperson is explaining a concept to a client involving gross lease. What should a California real estate licensee understand? (Item 49)
Answer choices
- A. Distinguish rent that includes most property expenses.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. It can be ignored if the transaction is expected to close quickly.
Correct Answer
A. Distinguish rent that includes most property expenses.
Explanation
The correct answer is A 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: hard
- Domain: Leasing and Property Management
- Objective: gross lease