When it comes to structuring a real estate deal, one of the most fundamental questions is whether the land should be leased under a long-term ground lease or sold outright.
Key Legal Considerations of Structuring Real Estate Deals As Ground Lease or Sale
When it comes to structuring a real estate deal, one of the most fundamental questions is whether the land should be leased under a long-term ground lease or sold outright. At first glance, the distinction may seem simple: a ground lease allows a landowner to retain ownership, and the tenant is permitted to use and improve the land, while a sale conveys fee title to the purchaser. But the legal, financial, and practical consequences of this choice are significant and can shape the future of a property for decades.
By
Frederick N. Poindexter and Taylor N. Wilson
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