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

In business, one may come across the cash accounting method, also known as cash-basis accounting, during the accounting period. The cash method of accounting is used where payments are ...

Usually a fairly large site zoned and planned for the purpose of industrial development and located outside the main residential area of a city. Industrial parks normally are provided with ...

Brick wall where a space or cavity is left between the inner and outer walls and is usually filled with insulation. ...

The term endorsement can have various meanings depending on the context. In a business transaction, the parties sign a contract about the legal transfer of a negotiable instrument in ...

Highest bid to buy and the lowest offer to sell a parcel of real estate in a particular market at a specified time. ...

Created by the US Congress in 1965, the Department of Housing and Urban Development (HUD) is the agency principally responsible for federal programs relating to housing and urban ...

The addendum definition is an attachment, clause, or section added to an agreement or contract specifying additional terms, conditions, or requirements to the original agreement or ...

Right of a current stockholder to maintain the percentage ownership in a real estate company by purchasing new shares on a proportionate basis before they are issued to the public. It ...

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 ...

Popular Real Estate Questions