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

Wondering what is a quitclaim deed? Well, the best quitclaim deed definition is something like a legal document used when someone is transferring a real estate property to another person. ...

Real estate artificial intelligence refers to the application of artificial intelligence technologies and algorithms in the field of real estate. It involves using advanced computational ...

You’ll find the most common definition and use of the term ‘perimeter’ in mathematics, more precisely geometry, to determine an item’s or land’s surface area. ...

Expected market value of property if sold today. ...

Builder's ten-year guarantee that their workmanship, materials, and construction are up to established standards. The HOW provides reimbursement for the cost of remedying specified defects. ...

An opening that lets the outside air come in or out of a structure. A ventilation fan lets the structure have access to outside air when the switch is in open position. ...

Amounts received from the sale or disposal of real property less all relevant deductions (direct costs associated with the sale or disposal). ...

Securities supported by a pool of mortgages. The principal and interest are due monthly in the mortgages and are passed through to the investors who bought the pool. ...

Area or county used in the census or other data gathering functions that has a population of 50,000 inhabitants or more. ...

Popular Real Estate Questions