New York State Real Estate Salesperson Licensing Exam

What is another term commonly used for a land lease?

1. Property lease

2. Fixed-term lease

3. Ground lease

4. Standard lease

The correct answer is: Ground lease

A land lease is commonly referred to as a "ground lease." This term specifically denotes a long-term lease agreement for undeveloped land, where the tenant is typically allowed to construct a building or make significant improvements on the property while paying rent to the landowner. Ground leases are often used in commercial real estate transactions, providing tenants with the rights to utilize the land for specific purposes, often for a duration of 50 to 99 years. The term "property lease" is broader and doesn't specifically pertain to land, while "fixed-term lease" refers to leases with a defined duration, which can apply to various types of leased properties. A "standard lease" is similarly generic and does not specifically indicate a lease associated with land. Thus, "ground lease" is the most accurate and specific term that describes a land lease scenario.