Escrow & Title
In a sale-leaseback transaction, the property owner:
ASells the property and rents it back from the buyer, allowing the owner to free up capital while retaining use of the property✓ Correct
BLeases the property with an option to purchase it later
CTransfers the property to a land trust and leases it back
DRefinances the mortgage and reinvests the proceeds in a new property
Explanation
In a sale-leaseback, the property owner sells the property and simultaneously enters into a lease agreement to continue occupying it. This is commonly used by businesses to free up capital tied up in real estate while retaining operational use of the property.
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