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Simple English definitions for legal terms
net-net-net lease
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A quick definition of net-net-net lease:
A net-net-net lease is a type of contract where the person who owns a property lets someone else use it in exchange for money. In this type of lease, the person using the property has to pay for all the expenses, including things like taxes and insurance. This means that the owner of the property gets to keep all the money they receive from the lease without having to pay for anything else.A more thorough explanation:
Definition: A net-net-net lease is a type of lease agreement where the lessee (tenant) is responsible for paying all property expenses, including taxes, insurance, and maintenance costs, in addition to the rent. This leaves the lessor (landlord) with an amount that is free of all claims.
Example: A commercial property owner leases their building to a business owner on a net-net-net lease agreement. The business owner is responsible for paying the rent, property taxes, insurance, and maintenance costs. This means that the property owner receives a fixed amount of rent without any deductions for expenses.
Explanation: In a net-net-net lease, the lessee takes on the responsibility of paying all property expenses, which can be beneficial for the lessor as they receive a fixed amount of rent without any deductions. This type of lease is commonly used in commercial real estate, where the lessee is expected to maintain the property and cover all associated costs.