3. Which of the following is true of an expense stop? A. the tenant pays expense

Question

3. Which of the following is true of an expense stop? A. the tenant pays expenses up to the amount of the stop B. the owner pays expenses up to the amount of the stop C. the tenant stops paying expenses after a certain date D. the owner stops paying expenses after a certain date 4. Which if the following is not true of capitalization rates? A. it is equal to net operating income divided by transaction (sale) price B. it assures the property will be a good investment if purchased C. it is derived form comparable sales D. it is noted in equations as "R

Explanation / Answer

3.

Answer: B

The amount of expenses up to which the landlord is responsible to pay and beyond which it is tenant’s responsibility, such limit for landlord is the expense stop. Here the stop means the maximum amount. It comes out of a predetermined agreement between the landlord and the tenant.

Therefore, the owner should pay up to the maximum amount of his portion by stopping there.

There must not be any date consideration.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.