10+ Ground Lease Agreement Templates – PDF
Following the demand of selling homes and realizing people’s dreams of owning a property, be it for commercial or private use, the real estate market, with its brokers and landowners, offers a unique option in the investment of property with a good market and resale value. Picture this. You see a beautiful house with lush trees and shades for a backdrop. You then think of having it at the right price. Imagine a similar scenario for a commercial building with a landscape design that would put popular hotels to shame.
You then discover you can get it with everything else included, but you have to pay more than half your money in the bank to get both building and land. When you buy a home or a commercial space, there is no way these days that you won’t be paying for the land they sit on too. However, you have another option, which is a deal for a land lease. In this case, you are buying just the shelter and renting the land to the owner. Better, yes? It actually depends on what you need and what the goal of this type of investment is. Either way, there’s more than one way this transaction can go. One is when a landowner who wants to have his ownership retained for part of the land but doesn’t want to have anything to do with the rest of the stuff that goes with owning it, like its development. In this case, a work agreement should be reached with a renting person to develop, build or sell a home or a business building while maintaining the ownership of the same land.
Agreement Template Bundle
Land/Ground Lease Agreement Template
Facilities Ground Lease Agreement
gaming.ny.gov
Ground Lease Agreement
durhamnc.gov
Ground Lease Agreement Example
fsl.dasa.ncsu.edu
Ground Lease Form
nycbar.org
Land Lease Agreement
nohvcc.org
The Basics of Ground/Land Leasing
A ground lease isn’t like your regular purchase of a property. It’s important that you understand the difference so that you will be better prepared for its advantages and maybe some inevitable consequences before you can make it as a worthy piece of investment agreement. You need to weigh your decision before you sign an agreement with a landowner. If you are the latter, then you have to put yourself on the other party’s shoes. For you to score a deal, there are some “tricks” that you might just find helpful. You can also consider the things listed below, before drafting an agreement for both you and the interested party to sign:
1. Pictures Sell
People are highly visual. In the case of land lease and real estate, leasers and brokers tend to forget that leasing real property is no different to any approach taken when selling products. Consumers are essentially drawn to what catches their eyes on shopping store windows, magazines and yes, pictures online or what is compelling to behold, enough for them to be convinced paying for its long term or short term commercial or private use. In the real estate business, the word “compelling,” usually means pictures that sell because 92% of property investors start their land or property hunt online, and they will never even get in the car to check the land that the building or house sits on if the online listings aren’t convincing. One study shows that listings with more than 6 pictures are twice as likely to be viewed by investors than listings that had fewer than 6 pictures, to give you a good idea of what to expect out of a property that the potential renter would be interested in. Do not underestimate the power of photographs. A picture is after all, worth a thousand words, especially if it is of a piece of land surrounded by nature or good landscape.
2. Location Matters
Location is important. The internet allows you to check most of what a location has to offer, including all the property up for sale, lands for lease, that you can find, which you may find suitable for you or for your commercial needs. That means you will have to find a broker or an agent who is qualified, and the group should also have people who would be able to represent a client well and it would likely be someone who knows the area, or specializes in it, enough to give you a whole listing that’s not only theirs, so knowledge on locality would count for much. You can better explore your prospect markets or available lands for lease in a preferred location.
As an investor, exploring your options will be vital to compete in a highly-competitive market. Prices change in certain locations and companies would continue to update their services, listings, and other important information on the site. If this is your first time planning to have a land for lease, you should study the market and know how it works to end up with a smooth transaction. Understanding the best locations that will fit your investment and knowing what you need versus what you want could help narrow down your choices as a client. Many people are more comfortable with a specific land and area than they would care to admit. You may also see Agreement Template.
3. The Leasing Game
All parties involved must understand everything about the land being leased, down to the very last detail. Some companies have people that you can also hire the services for, to help you maximize your smart goals and set your expectations to something manageable. Know what a potential investment entails, what it includes, and how high the stakes are for you.
It pays to know what you get yourself into and how much you are going to gain versus what you can lose. It pays to know how different buying and selling is, so you have to get all access to information on prices, costs, as well as tips to help you explore your options and what to avoid.
4. The Buying/Renting Game
Websites online offer helpful articles with tips about the trend in the industry: what you should give up and what you should follow as an investor or owner. Appearance is a major selling point. Then comes the question of whether it is something you will be able to afford. Or if it proves to be worth the rent and the money invested. The price tag matters a lot, in any kind of purchase. It is the determining factor in whether you walk away with something or decide not to. This will also give potential clients a good representation from the company because of good connections and reliable dealers who are open for inquiries just like the owner.
5. Set Your Trip
Some landowners and brokers provide access like the ones in open houses in the area and nearby locations for different dates. Check pages with photos of properties and land listed on the area complete with renting prices and other information. Most of the time, these pages are continuously updated so you can check an area of your choice in case they offer a “tour”. Some also provide contact numbers you can call so that you can be connected to that community’s real estate agent. If you contact the number listed, the company will help you out in having one of their trusted agents to give you a tour or simply discuss leasing the ground. A trip to the location is the best chance you can check a land that might just be what you need.
6. Research Helps
What you don’t know could hurt you or your bank account. The internet provides a good number of articles with the best tips while you have your eye on a certain land. Secure a list of the lands or property that you have come across online. You would be able to narrow this down later for prices and location. The real estate market is a tough one and being a tenant sounds like a gamble even for those who already have experience but when there is so much to gain and little to lose, you might just well be making one of the most important investments you will ever dare to do.
Research and legwork can help you decide which land would be ideal since it would be difficult to make a choice when you look at the overwhelming choices the market has to offer. Do your homework agenda because while you may not know everything there is to know in getting a profitable land in your dream location, research will help you know enough so that there would be no holding back, no regrets and no looking back when you finally put the money down, sign the paper and make the choice.
Land Lease Agreement Sample
Land Leasing
dpipwe.tas.gov.au
Lease of Government-Owned Land
ppp.worldbank.org
Sample Short Term Lease
landforgood.org
Familiarize yourself with everything that leasing a property with the land it sits on and what it entails. Ground leases can really work to your advantage and is also a practical way of doing many types of business transactions. Knowing enough about what ground lease involves and its concept could be profitable for all parties, as well as the understanding of when a ground lease is a good deal or not.
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