Which statement about a Gross lease is correct?

• A. In a Gross lease, the tenant pays all operating expenses.
• B. In a Gross lease, the landlord pays no expenses.
• C. In a Gross lease, the tenant pays taxes and insurance only.
• D. In a Gross lease, the landlord pays most expenses; the tenant pays none or minimal

Answer: (D)

In a gross lease, the landlord covers most of the property's operating costs, while the tenant pays a single rent amount and typically does not cover those expenses separately. This is why the statement that the landlord pays most expenses and the tenant pays none or minimal best describes a gross lease. The other options describe scenarios where the tenant bears all operating costs, or where the landlord covers none, or where the tenant pays taxes and insurance only—these align with net lease structures, not a gross lease. In practice, utilities or certain services might be billed separately in some variations, but the defining idea is that the landlord handles most operating costs.