Ace the Florida Real Estate Exam 2025 – Unlock Your Agent Superpowers!

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Question: 1 / 400

In a percentage lease, the rent may:

Decrease based on the landlord’s discretion

Stay the same

Fluctuate based off sales

A percentage lease is a type of lease agreement commonly used in commercial real estate. It allows the landlord to share in the profits of the tenant's business by setting a base rent amount and then adding a percentage of the tenant's sales on top of that. This means that the rent may fluctuate based on the tenant's sales, making option C the correct answer.

Options A, B, and D are all incorrect because they do not accurately describe how a percentage lease works. In option A, the rent cannot decrease solely based on the landlord's discretion as it is tied to the tenant's sales. In option B, the rent does not stay the same as it is tied to the tenant's sales and may fluctuate. In option D, the rent does not increase annually at a fixed rate as it is dependent on the tenant's sales.

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Increase annually at a fixed rate

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