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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Which type of lease is likely to have predetermined increases based on an index?

Percentage lease
Fixed lease
Variable lease
Net lease

The correct answer is: Variable lease

A variable lease is structured specifically to include predetermined increases that are often linked to an economic index, such as the Consumer Price Index (CPI) or another measure of inflation. This means that as the index fluctuates, the lease payments may increase at specified intervals, ensuring that the landlord's income remains in line with economic conditions over time. This type of lease is advantageous for landlords to maintain consistent revenue as costs rise. In contrast, a percentage lease generally involves rental payments tied to a percentage of the tenant's sales, not predetermined index increases. A fixed lease has a set rental amount that does not change over the lease term, providing no built-in increases. Lastly, a net lease typically requires the tenant to pay additional costs such as property taxes, insurance, and maintenance, but it does not inherently include adjustments tied to an index for the base rent itself.