Ground Lease

Definition: A ground lease leases land, commonly allowing the tenant to construct or use improvements under the lease terms.

Example

A business leases a site from the landowner and constructs a building as permitted by the agreement.

Keep the distinction clear

The lease must address improvements, financing, responsibilities, and what happens at expiration. Leasing the site does not itself transfer fee ownership.

Related terms

Lease · Leasehold Estate · Lessor

Keep studying

Freehold vs. Leasehold Estates: How to Tell Them Apart

References: Boston University Law: ground leases and variable rentals

Pronunciation (US): GROWND LEES (capitals show stress)

Pronunciation reference: Merriam-Webster