what is land lease? Do you have land lease contract?

In Leasing Property - Asked by Raman P. - Jul 24, 2010
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Answer(s)

Damon D.
Broker/Agent
Bala Cynwyd, PA

A land lease is simply that...a tenant is leasing a parcel of land for their use. Depending on the deal structure, the land may be delivered to the tenant in a few different ways - for the sake of keeping things simple, lets say there are two basic examples. The land can be delivered as raw land, whereby the tenant is responsible for bringing all electrical, plumbing, etc. to the site, do all the paving, curbing, lighting and building construction. Alternatively, the site can be delivered by the owner to the tenant as a "pad ready" site, where the tenant only needs to do their vertical construction and the owner does everything else. Regarding the contract, yes, there will most definitely be a contract between the owner and the tenant for a land lease.

Jul 24, 2010
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yasser e.
Owner/Investor
Indianapolis, IN

yes

Jul 25, 2010
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Rob B.
Chandler, AZ

A land lease is a type of financial arrangement in which the ground under a structure is leased, rather than sold to the builder, meaning that the land and the structure are owned independently. There are several reasons to enter a land lease contract, but it occurs most commonly when a real estate investor wishes to retain a piece of land, but not necessarily put energy into developing it. In this instance, the investor might work with a developer to create a land lease contract, allowing the developer to build a structure and rent or sell it, with the understanding that the land is leased and does not come with the building. This type of arrangement is more common in urban areas, and is often associated with cooperatives or tenant-owned buildings.
I hope this helps. There are many places you can find forms for a land lease. You could try your Title Company or one of the professional organizations that offer form assistance.
Rob Baird, CA RE Lic #544165 (One of the oldest, active licenses in CA)
951 515-5855

Jul 26, 2010
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