Leasing and Property Management Practice Question
Question
An investor is comparing two properties involving gross lease. What should a California real estate licensee understand? (Item 79)
Answer choices
- A. It can be ignored if the transaction is expected to close quickly.
- B. It requires the licensee to favor the other party over the licensee’s own client.
- C. Distinguish rent that includes most property expenses.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
C. Distinguish rent that includes most property expenses.
Explanation
The correct answer is C 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