Common Contracts

Residential leaseback agreement template

May 4th, 2023

• Filed
  May 4th, 2023

A sale and leaseback agreement is a three-way transaction between a company, an investor, and a leasing company. In this type of contract, the company sells its property to the investor for less than fair market value. The seller then leases back from the leasing company for an agreed-upon rental rate for a set period of time. After the term expires, ownership reverts back to the original owner – usually at a higher price than what was paid by the investor. A sale and leaseback agreement is a type of transaction that is typically used as a way to raise money quickly through debt financing or equity financing without selling shares in the business. It can also be used as part of succession planning strategies where if a business owner wants someone else other than family members to own their business down the road. Below is a list of common sections included in Sale And Leaseback Agreements.