Renting the Land
- Ground lease agreements, like other lease contracts, are an exchange of the use of property for rent payments. The agreement will describe the land to be rented and the amount and timing of the rental payments.
- The lease should specify which party is responsible for expenses such as taxes and insurance. In a ground lease agreement, the tenant usually pays all of these expenses.
- Improvements or structures that a tenant adds to the property come under the ownership of the landlord at the end of a ground lease. An agreement should specify whether the tenant would receive any type of compensation for the improvements.
Termination and Renewal
- Ground lease agreements often specify methods for renewing the lease at the end of the term. If the parties are interested in this, they should follow the procedures exactly as set forth in the agreement.