1. In a triple-net (NNN) lease, the tenant pays base rent plus:
Answer & explanation
Answer: C. Net (N) adds taxes; double net (NN) adds taxes and insurance; triple net (NNN) adds taxes, insurance and maintenance.
leasing
lease
A contract between a property owner (lessor or landlord) and a tenant (lessee) that transfers the right to possess and use property for a period of time in exchange for rent. A lease creates a leasehold estate. It is both a contract and a conveyance of a possessory interest. Many states require leases longer than one year to be in writing.
- Exam tip
- The landlord is the lessor, the tenant is the lessee. A lease transfers possession, not ownership.
- Example
- An owner signs a 12-month lease with a tenant for $1,800 a month; the tenant now holds an estate for years.
Related terms & state variants
Sources
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Last verified: 2026-10-23