Illinois Real Estate Practice Exam

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Prepare for the Illinois Real Estate Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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In a percentage lease, what do you pay in addition to a monthly base amount?

A percentage of the landlord's expenses
A percentage of your gross annual sales
A set percentage of the property value
A percentage of the total square footage

The correct answer is: A percentage of your gross annual sales

In a percentage lease, the tenant pays the landlord a base rent amount plus a percentage of their gross annual sales. This arrangement allows the landlord to benefit directly from the tenant's success and aligns the interests of both parties in driving up sales and ultimately increasing the potential rental income for the landlord. Option B is correct because it accurately describes the additional payment made by the tenant in a percentage lease agreement. Options A, C, and D are incorrect because they do not accurately describe what tenants pay in a percentage lease. In a percentage lease, the amount paid by the tenant is directly tied to the business's performance rather than the landlord's expenses, the property value, or the total square footage of the leased space.