Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Leaseback

A leaseback (sale-leaseback) is a transaction where an owner sells property and simultaneously leases it back from the buyer, converting equity to cash while retaining operational use, common in commercial real estate and sometimes residential relocations.

Exam context

Match leaseback to sell then lease same property. Lease-option gives purchase right; leaseback transfers ownership to buyer-lessor. Build-to-suit differs as new construction for tenant.

Commercial sale-leaseback

Businesses sell owned facilities to investors and lease them long term, often net leases shifting maintenance and taxes to the seller-tenant. Proceeds fund operations or debt paydown. Cap rates on the lease drive purchase price. Lenders scrutinize lease term length and credit of the tenant.

Residential contexts

Homeowners may sell to an investor and rent back briefly while relocating, or use institutional iBuyer programs with short post-closing occupancy agreements distinct from long commercial leasebacks. Agents must clarify whether occupancy is a lease or license and document rent, deposits, and move-out dates to avoid holdover disputes.

Examples

  • Corporate facility

    A retailer sells its distribution center for $20 million and signs a 15-year triple-net leaseback, freeing capital while keeping the same operations on site.

  • Short post-closing rent

    A seller closes on Friday and rents back for 30 days while the new home finishes construction, paying daily rent and maintaining insurance per the occupancy agreement.

Keep studying

Practice leaseback questionsEnroll in pre-licensing

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