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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What type of lease increases over a period of time?

Ground Lease
Variable Lease
Gross Lease
Triple Net Lease

The correct answer is: Variable Lease

The type of lease that increases over a period of time is a variable lease. Variable leases, also known as fluctuating leases, incorporate scheduled increases in rent over specific intervals. This could be tied to an index or predetermined increase rates, allowing the landlord to adjust the rent based on market conditions or inflation, which provides greater financial predictability for both landlords and tenants. In contrast, a ground lease typically involves leasing land only, with the tenant building on that land. A gross lease involves a fixed rental payment where the landlord covers all property operating expenses. A triple net lease requires the tenant to pay for additional costs such as property taxes, insurance, and maintenance, and while it can result in varying total payments, the base rent itself typically does not change during the lease term unless renegotiated.