Which term defines a lease where the landlord covers expenses?

• A. Retail Ground Lease
• B. Percentage Lease
• C. Gross Lease
• D. Net Lease

Answer: (C)

A lease where the landlord covers expenses is referred to as a gross lease. In this type of lease agreement, the landlord is responsible for paying all or most of the property expenses, including property taxes, insurance, and maintenance costs. This arrangement provides tenants with simplicity and predictability when it comes to their financial obligations, as they typically pay a fixed rent without worrying about fluctuating costs related to property operations.

In contrast, other lease types require tenants to take on varying degrees of responsibility for expenses. For instance, a retail ground lease typically involves a tenant leasing land to develop their own building, but it doesn't imply that the landlord covers all expenses. A percentage lease usually involves rent being paid as a percentage of the tenant's sales, also not aligning with the notion of the landlord covering all expenses. A net lease signifies that tenants are responsible for paying some or all expenses in addition to their base rent, therefore not fitting the description of a lease where the landlord covers expenses.