Property Ownership

In NJ, a 'ground lease' is a type of lease where:

AThe tenant rents space in a basement or ground floor only
BThe landowner leases the land to a tenant who constructs and owns improvements on the land, with the improvements reverting to the landowner at lease expiration✓ Correct
CAgricultural land is leased at ground-level rates
DThe government leases land for one year

Explanation

A ground lease is a long-term lease (often 50–99 years) of land only. The tenant builds and operates improvements at their expense; at lease end, the improvements typically revert to the landowner. Common in commercial real estate.

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