Contracts

What is a sale and leaseback transaction?

ASelling a property to pay a leaseback penalty
BA transaction where an owner sells their property and simultaneously leases it back from the buyer✓ Correct
CA lease that allows purchase later
DA transaction where a lease converts to ownership

Explanation

In a sale-leaseback, the property owner sells the property and simultaneously executes a long-term lease from the new owner. This allows the seller to convert equity to capital while retaining use of the property, common in commercial real estate.

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