Sale-Leaseback

Definition: A transaction in which an owner sells a property and leases it back from the purchaser, allowing continued occupancy under the lease.

Example

A business sells its building to an investor and signs a lease so it can keep operating there.

Keep the distinction clear

The seller becomes a tenant rather than retaining the same ownership rights. Evaluate rent, lease terms, operating obligations, and financial consequences along with the sale proceeds.

Related terms

Lessor · Lessee · Lease

Keep studying

FREC Course II Syllabus: What to Study for the Broker State Exam

References: California DRE: real estate glossary

Pronunciation (US): SAYL LEES-bak (capitals show stress)

Pronunciation reference: Merriam-Webster