Ownership of Business Property & Land Leasing Questions

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biljohns

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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.
 
We aren't an investment site, besides, do you really want to take financial advice from strangers?


Sent from my iPad3 using Tapatalk HD
 
We aren't an investment site, besides, do you really want to take financial advice from strangers?


Sent from my iPad3 using Tapatalk HD

Disregard the investment part of my post. I am more concerned with the legal part of my post (scenario 1 & 2).
 
You might want to talk to an attorney before taking any type of action though someone here may come along with some information for you.
 
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