Ground Lease Law and Legal Definition

A ground lease is a lease of land only, rather than the structures on the land as well. It is also called a land lease. Such leases are governed contract law and vary by their contract terms. For intance, a ground lease may warrant that the soil is suitable for any improvements built upon it. Some examples include a town leasing land to a company for use as the grounds for a county fair or retailers using ground leases as one of several vehicles to obtain sites for their stores and facilities.