Real Estate Lease Types and Terminology

These flashcards cover various types of leases and important real estate terminology that are essential for understanding lease agreements in real estate.

Gross Lease

A lease in which the lessee pays a fixed amount of rent and the lessor covers all operating expenses.

Net Lease

A lease where the lessee pays a fixed rent plus a share of operating expenses such as taxes and maintenance.

Percentage Lease

A lease where rent is based on a percentage of the business's gross income.

Graduated Lease

A lease agreement that includes rent increases at set dates in the future.

Index Lease

A lease where rent is tied to some external standard, such as a cost of living index.

Ground Lease

A lease where the lessee pays fixed rent and only rents the land, supplying their own building.

Actual Eviction

Eviction that results from the direct, intentional action of the lessor.

Constructive Eviction

Eviction that results from the lessor's failure to maintain the lease agreement.

Associate Broker

A person who holds a broker's license but is affiliated exclusively with a sponsoring broker.

Qualifying Broker

The sponsoring broker for a licensed corporation, LLC, or partnership.

Client

One who engages the professional advice and services of a licensee as their agent.

Buyer's Agent

A licensee employed by and representing only the buyer in a real estate transaction.

Commingling

The act of putting personal funds and funds belonging to other persons into one account.