Escrow & Title

In a sale-leaseback arrangement, the seller:

ABuys back the property after 5 years

BSells the property and immediately leases it back from the new owner✓ Correct

CLeases the property before selling it

DSells and then rents an adjacent property

Explanation

In a sale-leaseback, the seller sells the property and simultaneously enters into a lease to remain in possession as a tenant, providing the seller with capital while retaining use of the property.

People Also Study

Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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