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BC Real Estate Trading Services Licensing Exam Practice · Question

Rajesh Sharma is a real estate licensee representing a prospective tenant looking for space in a shopping plaza in Victoria. The landlord offers a lease where the tenant will pay a fixed rent of $3,000/month plus their proportionate share of property taxes, building insurance, and all common area maintenance (CAM) costs. What type of lease is the landlord offering?

A triple net (NNN) lease requires the tenant to pay their share of property taxes, building insurance, and common area maintenance (CAM) costs, in addition to b

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Question: Rajesh Sharma is a real estate licensee representing a prospective tenant looking for space in a shopping plaza in Victoria. The landlord offers a lease where the tenant will pay a fixed rent of $3,000/month plus their proportionate share of property taxes, building insurance, and all common area maintenance (CAM) costs. What type of lease is the landlord offering?

Answer options:

  • A gross lease.
  • A modified gross lease.
  • A net-net (double net) lease. ✅ A triple net (NNN) lease.

Correct answer: A triple net (NNN) lease.

Explanation: A triple net (NNN) lease requires the tenant to pay their share of property taxes, building insurance, and common area maintenance (CAM) costs, in addition to base rent. The scenario explicitly states the tenant will pay all three of these 'net' expenses.

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