Florida Broker Practice Exam

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Prepare for the Florida Broker Exam. Study with interactive quizzes, flashcards, and multiple choice questions that include hints and explanations. Ace your exam and start your real estate career today!

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In a variable lease, how does the rent payment change?

Based on the tenant's earnings
Based on a predetermined index
Fixed amount over time
Subject to negotiation each year

The correct answer is: Based on a predetermined index

In a variable lease, the rent payment is based on a predetermined index, which means that the lease agreement specifies a particular index, such as the Consumer Price Index (CPI), to determine adjustments in rent over time. This structure allows the rent to fluctuate in line with economic factors or market conditions that are represented by the chosen index. As the index changes, the rent is adjusted accordingly, ensuring both the landlord and tenant have a clear and consistent method for altering the rent payments without needing renegotiation for every change. The other options, while they represent different ways rents can be structured, do not accurately describe how a variable lease functions. For instance, linking rent to a tenant's earnings introduces an element of unpredictability that is not typical of variable leases, whereas a fixed amount over time suggests a static lease agreement, and regular negotiation does not align with the structured adjustment based on an index.