Which lease is characterized by the tenant occupying land with the landlord retaining ownership of any improvements?

• A. Sale & Leaseback
• B. Escalated Lease
• C. Ground Lease
• D. Index Lease

Answer: (C)

In a ground lease, the landowner keeps ownership of the land, while the tenant gains the right to occupy and use that land for a long period. Any buildings or improvements erected on the land are tied to the lease and, by design, ultimately revert to the landowner at the end of the term. So the tenant uses the land, but ownership of the improvements remains with the landlord (or reverts to the landlord when the lease ends). That matches the description of occupying land with the landlord retaining ownership of the improvements.

The other options describe rent relationships or financial arrangements rather than who owns the improvements on the land, so they don’t fit this scenario.