What is the technique called where a seller deeds property to a buyer for consideration and the buyer simultaneously leases the property back to the seller?

Study for the Kansas Real Estate Salesperson Exam. Engage with flashcards and multiple choice questions, complete with hints and explanations. Prepare thoroughly for your exam!

The correct answer is the sale-leaseback. This technique involves a seller transferring ownership of a property to a buyer for a specified amount of consideration, often a mutually agreed price. At the same time, the buyer leases the property back to the seller, allowing the seller to retain the right to use and occupy the property as a tenant. This arrangement provides the seller with immediate capital while also allowing them to continue utilizing the property without interruption in their business operations.

A significant advantage of a sale-leaseback is that it can improve the seller's cash flow, providing funds for operational needs or expansion opportunities, while offering the buyer a steady rental income. Furthermore, it can be beneficial for tax purposes depending on the structure of the transaction.

Other options do not accurately depict this scenario. A lease-option agreement involves a lease with an option to purchase at a later date, a purchase agreement is a contract to buy property without the lease-back component, and a rent-to-own scheme typically describes an arrangement where a tenant pays rent with the possibility of purchasing the property later, but does not reflect the simultaneous transfer and lease-back nature of the sale-leaseback arrangement.

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