Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does a tenant agree to pay in a Gross Lease?

Variable rent depending on utilities
Same amount of rent each month
Base rent plus all property expenses
Rent based on the gross sales of their business

The correct answer is: Same amount of rent each month

A Gross Lease is a type of lease agreement in which the tenant pays a fixed rent amount each month and the landlord is responsible for all property expenses. Option A is incorrect because the tenant in a Gross Lease does not have to pay for any variable expenses such as utilities. Option C is incorrect because the tenant does not have to pay for any additional property expenses in a Gross Lease. Option D is incorrect because the rent for a Gross Lease is not based on the tenant's business sales, but rather a fixed amount agreed upon in the lease agreement. Therefore, the correct answer is B, as the tenant agrees to pay the same amount of rent each month in a Gross Lease.