What does a ground lease specifically detail?

A ground lease specifically details the terms and conditions of ground rent payment, which involves an agreement between a landowner (the lessor) and a lessee who leases the land for a specified period typically for building purposes. This type of lease typically outlines the obligations of the lessee regarding the payment of rent, which may be determined as a fixed sum, a percentage of any profit produced from the property, or adjustments based on other criteria.

Additionally, ground leases usually cover the duration of the lease, development expectations, maintenance responsibilities, and rules regarding the use of the property. Importantly, the lease does not transfer ownership of the land but rather allows the lessee to use and develop the property while paying the agreed-upon ground rent to the lessor for the use of the land. This distinguishes ground leases from other types of agreements that handle ownership transfer or rights among co-owners.