Scenario 1:
- Person A owns a plot of land.
- Person B wants to lease Person A's land for commercial use.
- Person B finances a property on the land.
- Person B builds new business property on the land.
- Person B defaults on business property loan.
1. Is Person A responsible for paying the rest of the business property loan since the business property exist on their land or does the lender now own the property?
Scenario 2:
- Person A owns a plot of land.
- Person B wants to lease Person A's land for commercial use.
- Person B finances a property on the land.
- Person B builds new business property on the land.
- Person B pays off business property loan.
1. Who owns the business property, Person A or Person B?
2. When it comes time to renew the lease of land, what happens if Person A doesn't want to renew the lease and Person B has a fully functioning business? (disregard the fact that land leases are more than the length of the life of a person)
3. If Person A owns the business property post Person B paying it off, can Person A destroy the property if a fully functioning business is operating?
Financing land can be expensive when trying to start a business I have noticed. What other options are there to own land while running a business that are affordable? If leasing land never allows the person financing the property on the land to own the property, it to me doesn't seem like a good investment?
I am new to this all, so please enlighten me.
- Person A owns a plot of land.
- Person B wants to lease Person A's land for commercial use.
- Person B finances a property on the land.
- Person B builds new business property on the land.
- Person B defaults on business property loan.
1. Is Person A responsible for paying the rest of the business property loan since the business property exist on their land or does the lender now own the property?
Scenario 2:
- Person A owns a plot of land.
- Person B wants to lease Person A's land for commercial use.
- Person B finances a property on the land.
- Person B builds new business property on the land.
- Person B pays off business property loan.
1. Who owns the business property, Person A or Person B?
2. When it comes time to renew the lease of land, what happens if Person A doesn't want to renew the lease and Person B has a fully functioning business? (disregard the fact that land leases are more than the length of the life of a person)
3. If Person A owns the business property post Person B paying it off, can Person A destroy the property if a fully functioning business is operating?
Financing land can be expensive when trying to start a business I have noticed. What other options are there to own land while running a business that are affordable? If leasing land never allows the person financing the property on the land to own the property, it to me doesn't seem like a good investment?
I am new to this all, so please enlighten me.
