Property Ownership

In Maine, a 'ground lease' is an arrangement where:

AThe landlord leases only the basement of a building
BThe landowner leases the land (not the building) to a tenant who constructs improvements✓ Correct
CFarmland is leased for growing crops
DThe government leases land to private individuals

Explanation

A ground lease is a long-term lease of land only, where the tenant constructs and owns improvements on the leased land. Ground leases are used in commercial real estate, allowing development without purchasing the underlying land.

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