Ground lease: land only, long-term; tenant builds — usually net
Before you read
Test yourself first: 5 questions
Question 1 of 5
Under a gross lease, the tenant typically:
Answer: A. In a gross lease the tenant pays a flat rent and the landlord covers operating expenses. In a net lease the tenant pays some or all of those expenses.
Question 2 of 5
A tenant with 8 months left transfers the full remaining term to a coworker, who pays rent directly to the landlord. The original tenant has made:
Answer: B. Transferring the ENTIRE remainder = ASSIGNMENT. The original tenant stays secondarily liable unless the landlord grants a release/novation. (Consent requirements depend on the lease — the question states no such clause.)
Question 3 of 5
In a triple-net (NNN) lease, the tenant pays:
Answer: A. In a triple-net lease the tenant covers the 'three nets' — taxes, insurance, and maintenance — on top of base rent. Common in commercial leasing.
Question 4 of 5
Under a gross lease, who is typically responsible for paying the property's operating expenses such as taxes, insurance, and maintenance?
Answer: B. In a gross lease, the tenant pays a fixed rent and the landlord pays all operating expenses (taxes, insurance, maintenance) out of that rent.
Question 5 of 5
An apartment tenant pays $1,200 per month and the landlord pays for property taxes, insurance, and building maintenance. What kind of lease is this?
Answer: B. Because the tenant pays a flat rent and the landlord covers the operating expenses, this is a gross lease, the form typical of residential rentals.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Gross lease: tenant pays RENT only; landlord pays expenses (typical apartment)
- Net lease: tenant also pays some/all expenses — N, NN, NNN (taxes, insurance, maintenance)
- Percentage lease: base rent + % of gross sales (retail anchor tenants)
- Ground lease: land only, long-term; tenant builds — usually net
- Graduated lease: rent steps up on a schedule; index lease: tied to CPI
Lease Types — Who Pays What: FAQs
Is Lease Types — Who Pays What on the real estate exam?
Yes. Leasing & Property Management is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
