In a ground lease, what interest does the landowner hold?
Correct Answer
B) The leased fee interest in the land
Why this is correct: In a ground lease, the landowner (lessor) retains the leased fee estate. This includes the right to receive contract rent and the reversion of the property at the lease's end. The tenant holds the leasehold estate. Why the other choices are wrong: The leasehold interest is held by the tenant. A life estate is a possessory interest for a lifetime, not created by a ground lease. An easement is a right to use another's land, not an ownership interest. Exam tip: Landowner = Leased Fee. Tenant = Leasehold. The sum of the leased fee and leasehold interests equals the fee simple value, absent external factors.
Why This Is the Correct Answer
Why this is correct: In a ground lease, the landowner (lessor) retains the leased fee estate. This includes the right to receive contract rent and the reversion of the property at the lease's end. The tenant holds the leasehold estate. Why the other choices are wrong: The leasehold interest is held by the tenant. A life estate is a possessory interest for a lifetime, not created by a ground lease. An easement is a right to use another's land, not an ownership interest. Exam tip: Landowner = Leased Fee. Tenant = Leasehold. The sum of the leased fee and leasehold interests equals the fee simple value, absent external factors.
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