Leasing and Property Management Practice Question
Question
An investor is comparing two properties involving percentage lease. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 51)
Answer choices
- A. It shifts all responsibility to escrow and eliminates the broker’s duties.
- B. It makes oral promises enforceable in every real estate transaction.
- C. Identify rent based partly on business revenue.
- D. It is optional whenever both parties verbally agree to proceed.
Correct Answer
C. Identify rent based partly on business revenue.
Explanation
The correct answer is C because percentage lease requires candidates to identify rent based partly on business revenue. 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: easy
- Domain: Leasing and Property Management
- Objective: percentage lease