Property Ownership

In Minnesota, a 'ground lease' is commonly used for which purpose?

AFor agricultural properties where the landowner leases their fields to a farmer
BA long-term lease of land only where the tenant builds their own improvements✓ Correct
CA short-term lease of a parking lot
DA lease of mineral rights to a mining company

Explanation

A ground lease is a long-term lease of land only (not improvements). The tenant constructs buildings on the leased land and owns the improvements during the lease term. At the end of the ground lease, the improvements typically revert to the landowner. Ground leases are used in commercial development in Minnesota when landowners want to retain ownership of the land.

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