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Which transaction is BEST described as involving a ground lease? A) A landlord charges a commercial tenant separate amounts for the land and the leased building. B) The tenant pays a base amount for the property plus a percentage of business-generated income. C) The tenant agrees to pay a proportionate, increased rental based on annual appraisals of the rented property. D) A landowner agrees to let a tenant drill for oil on a property for 75 years.
Which transaction is BEST described as involving a ground lease? A) A landlord charges a commercial tenant separate amounts for the land and the leased building. B) The tenant pays a base amount for the property plus a percentage of business-generated income. C) The tenant agrees to pay a proportionate, increased rental based on annual appraisals of the rented property. D) A landowner agrees to let a tenant drill for oil on a property for 75 years.
Thetransactionthat BEST describes a ground lease is option D, where alandowneragrees to let atenant drillfor oil on a property for 75 years.A ground lease is a type of long-term lease agreement where the tenant is given permission to use and develop the land for a specified period, while theownershipof the land remains with the landlord. In a ground lease, the tenant typically pays rent for the land and is responsible for any improvements made on the property. This type of lease is commonly used in commercial real estate for large developments, such as office buildings or shopping centers. Option A describes a typical commercial lease agreement, where thelandlordcharges separate amounts for the land and the leased building. Option B is a form of lease commonly used in retail, known as a percentage lease, where the tenant pays a base rent plus a percentage of their business-generated income. Option C describes a type of lease agreement where the tenant agrees to pay aproportionate, increased rental based on annual appraisals of the rented property.To know more about alandlordbrainly.com/question/30897115#SPJ11...