Definition of "Land sale-leaseback"

The selling of a parcel of land whereby the original owner agrees to immediately leaseback the property. The advantage of the land sale-leaseback in that the original property owner can realize the capital value of the property while still retaining its use. For example, John wants to acquire another commercial piece of property. He agrees to a land sale-leaseback of the land upon which his office building is constructed. He sells the property to Jack agreeing to make rental payments to the new owner while still occupying the office building. Realizing the capital value of the land, he is now able to acquire the second piece of commercial property.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

One who acts as a witness and fives written testimony under oath. ...

Justifiable and fair amount for a real estate transaction based on the conditions and limitations involved in the exchange. ...

Grouping of several columns arranged in intervals supporting an architectural overhang, usually a roof. ...

A shallow yet funny definition of a tax specialist is someone who loved math since 1st grade. He or she has an elephant’s memory and is always up to date with the regulations and ...

Used to compute the tax on a specified taxable income. The marginal tax rate usually increases as the taxable income rises. ...

(1) The exposed trim and molding surrounding a door or window. (2) Woodwork which encases a pipe or structural member. (3) Method of creating a form for the pouring of concrete. ...

Square footage of space a parcel of land has. ...

Position taken by a real estate consultant representing the best interests of the client. ...

Degree of construction of residential property measured in number of units or dollar value. ...

Popular Real Estate Questions