A ground lease typically involves:
Correct Answer
D) A long-term lease of land with tenant-owned improvements
Why this is correct: A ground lease is a long-term lease where the tenant leases the land and typically owns the improvements built on it for the lease term. Why the other choices are wrong: 'A month-to-month tenancy of agricultural land' describes a short-term agricultural lease. 'A short-term rental of a fully improved commercial property' is a standard leasehold. 'A lease of mineral rights' is a mineral lease, not a ground lease. Exam tip: In a ground lease, think 'landlord owns dirt, tenant owns building.'
Why This Is the Correct Answer
Why this is correct: A ground lease is a long-term lease where the tenant leases the land and typically owns the improvements built on it for the lease term. Why the other choices are wrong: 'A month-to-month tenancy of agricultural land' describes a short-term agricultural lease. 'A short-term rental of a fully improved commercial property' is a standard leasehold. 'A lease of mineral rights' is a mineral lease, not a ground lease. Exam tip: In a ground lease, think 'landlord owns dirt, tenant owns building.'
More Property Description Questions
A property is located in FEMA flood zone AE with a base flood elevation of 485 feet. The lowest floor is at 487 feet. What is the significance for the appraisal?
In a leasehold estate, the tenant's interest in the property is called:
A residential property is located in a subdivision governed by covenants, conditions, and restrictions (CC&Rs) recorded in 1985. One CC&R prohibits detached accessory structures over 12 feet in height. The property currently has a 14-foot-tall detached garage built in 2012. No enforcement action has been taken. How should the appraiser reflect this violation in the appraisal report?
Why is a street address alone insufficient as a legal description in an appraisal report?
In the rectangular survey system, a section contains how many acres?
A property is located in a 100-year flood zone. This means the property has what probability of flooding in any given year?
A building's foundation shows minor settling cracks that have been properly repaired and show no signs of recent movement. This condition represents:
An appraisal of a rented single-family home where the lease runs another four years at below-market rent is valuing which interest, from the owner's side?
When appraising a tenant's interest in a property under a long-term lease with below-market rent, the appraiser is valuing which property right?
A rectangular lot measures 150 feet wide by 200 feet deep. If similar lots in the area sell for $8.50 per square foot, what is the estimated value of this lot?
People Also Study
Valuation Principles & Procedures
25% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
USPAP (Ethics & Standards)
15% of exam
Report Writing & Compliance
10% of exam