Illinois Real Estate Practice Exam

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Study for the Illinois Real Estate Exam. Prepare yourself with comprehensive quiz assessments that involve multiple-choice questions, offering hints and insights for each question. Equip yourself for success on your upcoming exam!

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A lease that involves paying three of the charges and the base amount is known as:

Triple Net Lease
Double Net Lease
Percentage Lease
Gross Lease

The correct answer is: Triple Net Lease

The correct designation for a lease that involves paying the base rent along with three additional charges—typically property taxes, insurance, and maintenance—is referred to as a Triple Net Lease (often abbreviated as NNN). This type of lease is common in commercial real estate and places the responsibility for the operational costs directly on the tenant, allowing landlords to have a more predictable income stream while minimizing their financial obligations. In contrast, a Double Net Lease would typically have the tenant responsible for two of the three charges (often taxes and insurance, but excluding maintenance), which would differentiate it from the Triple Net Lease. A Percentage Lease usually involves the tenant paying a base rent plus a percentage of their sales revenue, making it suited for retail spaces. Lastly, a Gross Lease typically entails the landlord covering all operating expenses, with the tenant simply paying a flat rental amount. Understanding these distinctions helps clarify various leasing structures in real estate transactions.