Massachusetts Real Estate License Practice Test

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Study for the Massachusetts Real Estate License Test. Prepare with multiple choice questions and explanations. Ace your exam with comprehensive practice!

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Which type of lease typically includes a base monthly rental plus a percentage of sales above a certain amount?

Gross Lease
Net Lease
Percentage Lease
Graduated Lease

The correct answer is: Percentage Lease

A percentage lease is specifically designed for retail properties where the landlord benefits from the tenant's sales performance. This type of lease structure allows the landlord to charge a base rent while also receiving a percentage of the tenant's gross sales that exceed a predetermined threshold. This arrangement is advantageous for both parties: the tenant can potentially lower their fixed costs when sales are low, and the landlord can increase their income as the tenant's business grows. In contrast, other lease types, such as a gross lease, include all costs in the base rent, with no percentage rent component. A net lease typically requires the tenant to pay additional expenses like taxes, insurance, and maintenance costs separately from the base rent. Meanwhile, a graduated lease involves scheduled increases in the rent over time but does not tie rent to the tenant's sales performance.