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Frequently Asked Questions What are the different types of
leases? Gross Leases
The rental rate includes all costs, services and utilities except telephone.
Landlord pays for electricity, heat, janitorial service, snow removal, taxes, insurance, water trash removal, lawn
care, etc.
Net Leases
Landlords differ as to how they
define a “Net” lease and should be asked to explain what costs will be the responsibility of the tenant.
Net, Net Leases
Landlord maintains roof, outer
walls, pays taxes and insurance. Tenant pays all other costs.
Net, Net, Net or Absolute Leases
Landlords responsible for roof
and outer wall repairs, tenant pays for all other costs including but not limited to: janitorial services, taxes, insurance,
snow removal, lawn maintenance, light bulbs, equipment repair, plumbing, and Common Area Maintenance (C.A.M), etc.
As a general rule an annual figure of $3.00 per square foot per year is the current estimate.
What does “Accepted Offer” mean? An offer for the property or business has been accepted by both the Buyer and the
Seller, however, some conditions (financing, etc.) have to be met before a closing can be scheduled AND another
offer could be made because the sale has not been finalized.
What does “Price Reduced” mean? Simply put, it means the owner
is motivated to sell and has lowered the price.
What is a Land Contract? A Land Contract is a written agreement
in which real estate is sold to a buyer who usually pays part of the purchase price when the contract is signed and then makes
regular payments over a specified period of time. The title to the property remains with the seller until
the total purchase price is paid; also called an installment contract.
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