Property Ownership

In New York, a 'ground lease' for a Manhattan commercial building typically provides that at the end of the lease term:

AThe tenant owns all improvements in perpetuity
BThe improvements revert to the landowner, and the tenant's leasehold interest expires✓ Correct
CThe tenant must remove all improvements at their cost
DThe land must be returned to its original vacant state

Explanation

In a typical ground lease, improvements erected by the tenant during the lease term revert to the landowner at the end of the lease. This is called 'reversion of improvements' and is a key feature that ground lease landlords value.

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