Land Use & Zoning
In Kentucky, a 'ground lease' on commercial property typically means:
AThe tenant rents only the ground floor of a building
BThe landowner leases the land to a tenant who constructs and owns improvements✓ Correct
CThe lease is for underground mineral rights
DThe lease covers only the land below the foundation
Explanation
A ground lease is a long-term lease (often 50-99 years) of land only, with the tenant constructing and owning improvements on the site. The landowner benefits from a steady income stream without giving up fee ownership.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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