Question

1. Which of the following transactions is BEST described as involving a ground lease?

a. A tenant agrees to pay a base amount for the property plus a percentage of business generated income

b. A landowner charges a commercial tenant separate amounts for the land and the leased restaurant facility.

c. A property owner negotiates terms with a prospective occupant to purchase the subject property at a fixed rate of $500 per month for a period of 10 years.

d. A property owner negotiates terms charging rent for a period of 50 years, allowing the tenant to improve the property with a restaurant building. After the 50 year period, the property and improvements return to the property owner.

e. A tenant agrees to pay a proportionate amount of rent, increasing on annual third-party appraisals of the leased property

2. The leasehold estate of the lessee can be which of the following:
a. an Estate at Will b. an Estate from Period to Period c. an Estate for Years d. an Estate at Sufferance e. all of the above

Answer 1

I have answered the question below

Please up vote for the same and thanks!!!

Do reach out in the comments for any queries

Answer:

1)

a landlord charges a commercial tenant separate amounts for the land and the leased building

Because, a ground lease is an agreement in which allows tenant to develop the land during the course of lease. Other options are incorrect as improvements and profits generated does not come under the condition of ground lease

2)

All the above

There are four sets of leasehold estate, with each being (a) estate for years, (b) estate from period to period, (c) estate at will, and (d) estate at sufferance.