Property Ownership

In New Mexico, which of the following is a characteristic of a 'ground lease'?

AThe tenant buys the land and leases back the building
BThe tenant leases the land long-term and owns the improvements on it✓ Correct
CThe landlord owns all improvements at the start
DThe lease is always month-to-month

Explanation

A ground lease is a long-term lease of land only—the tenant constructs and owns the improvements during the lease term. At expiration, the improvements typically revert to the landowner.

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