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Lease Definitions & Terms

P

Pass-through

Expenses or a portion of expenses associated with tenancy that are "passed through" from the landlord to the tenant who then pays them.


Percentage Lease

A lease of property in which the rent is based upon the percentage of the sales volume made on the specific premises. There is usually a clause for a minimum rent as well.


Open listing

A listing contract under which the broker's commission is contingent upon the broker producing a buyer before the property is sold by the owner or another broker.


Option

A contractual agreement giving one party a privilege of demanding, within a specified time, the carrying out of a transaction upon stipulated terms.