Title: Describe the primary types of leases.
Course: Real Estate (12154) > Section: Describing Leases and Real Property Management

Description should include information about

- gross lease—the tenant pays a fixed rental, and the landlord pays all property charges or operating expenses
- net lease—the tenant pays all or some of the property charges in addition to the rent
- percentage lease—a lease in which the rent is based on a minimum fixed rental fee plus a percentage of the gross income received by the tenant doing business on the leased property.

DPOR correlations: 18VAC135-20-400. 4 (Contracts); 18VAC135-20-400. 8 (Leases)

Process/Skill Questions:

- How would you calculate rent for a property of a certain size and value?
- What are the requirements of a valid lease?
- What actions constitute a breach of lease?
- What are the circumstances for which a lease may be discharged?
- Why would leasehold estates be preferable to immediate transfer of ownership (freehold estates)?
- Under what circumstances would a lease be implied?
- Why is it important for a lease to be written?
- When is an oral lease valid or enforceable?
- When would a lease be based on the CPI (Consumer Price Index)?
- Why would a lessee prefer one type of lease over another type?