Property Management

Which of the following describes a South Dakota ground lease?

AThe tenant leases only the land from the owner and constructs improvements✓ Correct
BThe landlord leases both the land and building to the tenant
CA lease for agricultural grazing only
DA lease for underground mining rights

Explanation

In a ground lease, the tenant leases only the land and typically constructs their own improvements (which may revert to the landowner at lease end). Ground leases often have very long terms (50–99 years).

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