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You are interested in buying a property that has Starbucks as the major lessee. The Starbucks lease has a current term of 15 years. The current lease is a net lease. This means that the landlord pays all taxes associated with the property and Starbucks only pays the rent. O True ○ False

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Answer #1

Net lease implies a manner in which a property is leased in such a manner that the tenant pays the rent as well as property taxes associated with the property. This kind of lease is generally long term.

If the landlord pays all taxes associated with the property and Starbucks only pays the rent then such as arrangement is not a net lease arrangement.

Hence, the given statement is False.

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