In a net lease:
A)the lessee pays for insurance, but does not maintain the asset.
B)the lessee pays to maintain, insure, and meet property tax obligations on the asset.
C)the lessor pays for insurance, maintenance, and property taxes.
D)the lessor and lessee split the maintenance, insurance, and property taxes 50:50.

Question

Quizplus · Accepted Answer

In a net lease, the lessee is responsible for paying to maintain, insure, and meet property tax obligations on the asset. This means that they are taking on more financial responsibility for the property compared to other types of leases. The lessor is typically responsible for the structural repairs and maintenance of the building, but the lessee is responsible for any repairs or maintenance related to their use of the property. Therefore, Option B is the correct choice.

In a Net Lease