Which type of lease involves periodical evaluation for rent adjustments?

Study for the AAAE Certified Member Test. Use flashcards and multiple choice questions, complete with hints and explanations. Get ready for your exam success!

The correct choice is a revaluation lease. This type of lease includes stipulated periods where the rental amount is reassessed and can be adjusted based on various factors, such as changes in market conditions or property value. The primary feature that defines a revaluation lease is this periodic evaluation, which ensures that the rent remains aligned with the current market dynamics, thus providing fairness to both the lessor and lessee.

In contrast, a straight lease typically involves a fixed rental payment for the entire duration of the lease agreement without adjustments. A graduated lease specifies predetermined increases in rent at specific intervals, but these increases are set in advance rather than being based on current market evaluations. A percentage lease usually ties the rental payment to a percentage of sales or revenue generated from the leased property, making it dependent on the lessee's business performance rather than periodic valuation. Each of these alternatives lacks the periodic evaluative component that is characteristic of a revaluation lease.

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