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Microsoft Word's Free Lease Agreement Template is a wonderful template for creating a legally binding contract and setting ground rules between the landlord and the tenant.
A prepaid lease (or operating lease) is a contract to acquire the use of tangible assets. Examples include property, plant, and equipment. Tangible assets are, which include plant, equipment, and real estate. The transaction typically includes the contractual obligation to use the assets over the long term.
The benefits of a ground lease Ground leases allow landlords to retain control over their land while simultaneously receiving a steady income. If executed properly, they can be a win-win scenario for both parties. Land leasing also allows for flexibility and specialized financing mechanisms.
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Use of the Leased Premises: In a net lease, the leased premises is usually used by a tenant to operate a business like a retail store or an office. In a ground lease, the tenant's aim is to develop a project on the vacant land. Once complete, they will sublease the completed space to end tenants.