In a Sale-Leaseback Agreement, who sells the property and then leases it back?

Prepare for the Texas Real Estate SAE Exam with our educational quiz. Study using flashcards and multiple choice questions, each with detailed explanations to ensure you're ready to pass your exam!

In a Sale-Leaseback Agreement, the correct party involved is the owner. This arrangement occurs when an owner of a property sells the asset to a buyer and simultaneously leases it back for a specified period. Essentially, the owner converts their equity in the property into liquid cash while still retaining the use of the property through the lease.

This structure is commonly used by businesses that need immediate capital but want to continue operations at the same location. The owner benefits from financial liquidity without having to relocate their operations, while the buyer becomes the new owner and earns rental income from the leaseback arrangement.

While the other answers may involve parties related to real estate transactions, they do not accurately describe the role specific to a Sale-Leaseback Agreement. The grantee refers to someone who receives a grant of property, the tenant is generally the one renting a property, and the buyer is the party acquiring the property but does not initiate the sale-leaseback process as the owner would.

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