Property OwnershipIntermediateDelaware Exam

What is a 'ground lease' in Delaware real estate?

AA short-term lease for agricultural land
BA long-term lease of land only, typically 50-99 years, under which the tenant constructs improvementsCorrect
CSimply a narrow lease covering only a single parking space or one ground-floor commercial unit, in general
DA lease secured by a mortgage on the land

Why A long-term lease of land only, typically 50-99 years, under which the tenant constructs improvements Is Correct

Answer B: A long-term lease of land only, typically 50-99 years, under which the tenant constructs improvements

A ground lease is a long-term (often 50-99 year) lease of land only. The tenant (ground lessee) constructs buildings and improvements on the land, which revert to the land owner (ground lessor) at lease expiration.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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