Ground Rent in Real Estate

Ground rent can be defined as the rent one pays on a piece of land leased to them. This means when you pay ground rent you do not own the last but you can own any property on the rented piece of land. Renting a piece of land makes it easy for people to own property be it for residential or commercial purposes. The rented land, however, remains the property of the landowner and can claim it back at the end of the tenancy agreement. This fact mostly causes a lot of ground rent scandal between the landlord and the tenant.

Causes of Scandals

There are various factors that can lead to disagreements between a landlord and a land tenant.

Some of which include.
  1. Breach of Contract
  2. This simply means that either the tenant or the landlord is not sticking to their side of the contract. Contract breaches can cause a lot of disagreements and mistrust. This kind of scandal affects business or homeowners if any. And can cause a lot of closure and losses too. It is very important for both parties to follow the signed contract to the letter so as to avoid scandals.

  3. Lack of Transparency
  4. Most landowners agree to rent their pieces of land for specified reasons. Some tenants, however, rent the land with an intention of using it for a totally different reason or change their original plan and use the land to do something else without informing the landlord. This tends to be a major cause of ground rent scandal. Renting ground is a common practice in the real estate world and can prove to be an easy way out to own property or run a business without having to buy land. This is a growing trend and is practiced in many parts of the world.