Property ManagementIntermediateDelaware Exam

What is a 'sale-leaseback' in Delaware commercial real estate?

AA tenant buys the landlord's property and immediately leases it back to the landlord
BA property owner sells the property and simultaneously leases it back from the new ownerCorrect
CA developer sells condos and leases the commercial units
DA bank forecloses and leases the property back to the original owner

Why A property owner sells the property and simultaneously leases it back from the new owner Is Correct

Answer B: A property owner sells the property and simultaneously leases it back from the new owner

In a sale-leaseback, the owner sells the property and simultaneously enters a long-term lease to remain as a tenant. This allows the original owner to unlock equity while retaining use and possession of the property.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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