All of the following lease provisions are advantageous to the lessee except?

Study for the Certified General Appraiser Exam. Explore flashcards and multiple-choice questions with hints and explanations to prepare effectively. Get ready for your certification!

The chosen answer, which is an escalation clause, is typically considered disadvantageous to the lessee because it allows for periodic increases in rent based on specific criteria, such as inflation or increased operating costs. This means that the lessee may face rising costs over time, making the lease more expensive than initially anticipated.

In contrast, the other provisions generally work to the advantage of the lessee. An escape clause allows the lessee to terminate the lease under certain conditions, providing flexibility. A renewal option grants the lessee the right to extend the lease term, which can secure favorable terms for a longer period. A purchase option gives the lessee the opportunity to buy the property, potentially at a beneficial price, offering a pathway to ownership. In this comparison, the escalation clause stands out as the provision that can lead to increasing financial obligations for the lessee, making it less favorable in the context of lease negotiations.

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