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!

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When you lease the ground but own the building, it is known as:

Variable Lease
Ground Lease
Triple Net Lease
Gross Lease

The correct answer is: Ground Lease

The correct answer is a ground lease because this type of lease allows a tenant to rent land from a landlord while retaining ownership over any structures they build on that land. In a ground lease, the tenant essentially has rights to the land for an extended period, usually decades, and can develop it according to their needs, such as constructing a building. At the end of the lease term, ownership of the building typically reverts to the landlord, depending on the lease terms. Other lease types mentioned do not fit this specific arrangement: a variable lease usually refers to one where the rental rate can change under defined conditions, a triple net lease requires the tenant to pay all costs associated with the property, including taxes and maintenance, and a gross lease includes most property expenses in the rental payment. However, none of these concepts capture the unique owner-tenant dynamic present in a ground lease.