An investor leases a vacant parcel for 50 years in order to construct an office building on the site. What type of lease is this?
Correct Answer
B) Ground lease
Ground lease is correct because the facts match a lease of land, often for a long term, under which the tenant may build or improve the site subject to the lease terms. That is the best description of the relationship, right, or legal concept tested here.
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A shopping-center tenant pays monthly base rent and additional rent equal to a percentage of retail sales above a break point. What type of lease is this?
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A written apartment lease begins on July 1 and ends on June 30 of the following year with no need for notice to terminate at the end. What leasehold is this?