Leasing and Property Management Practice Question

Question

A salesperson is explaining a concept to a client involving percentage lease. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 21)

Answer choices

1. A. Identify rent based partly on business revenue.
2. B. It is optional whenever both parties verbally agree to proceed.
3. C. It allows a salesperson to act independently of the responsible broker.
4. D. It shifts all responsibility to escrow and eliminates the broker’s duties.

Correct Answer

A. Identify rent based partly on business revenue.

Explanation

The correct answer is A 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

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