Real Estate (property rights Law

What is the name of your state? Georgia

what are the pitfalls to buying a commercial building, ivesting $500,000 to renovate it, but not buying the land on which the building sits, instead, leasing the land (99 yr. lease) from the previous owner of both the land and building?
I can think of two good reasons why this would not be a good idea - possibility of irs seizure if land owner has tax problems - problem if building owner wants to sell building, land lease may have to be re-negotiated.
Need link(s) to case law.
Could some sort of security bond or insurance be purchased to protect building owner? Need information link if this is an option.

BarryR

[HomeGuru]

Originally posted by barryr
What is the name of your state? Georgia

what are the pitfalls to buying a commercial building, ivesting $500,000 to renovate it, but not buying the land on which the building sits, instead, leasing the land (99 yr. lease) from the previous owner of both the land and building?
I can think of two good reasons why this would not be a good idea - possibility of irs seizure if land owner has tax problems - problem if building owner wants to sell building, land lease may have to be re-negotiated.
Need link(s) to case law.
Could some sort of security bond or insurance be purchased to protect building owner? Need information link if this is an option.

BarryR

**A: I could give a 40 hour course on fee simple vs. leasehold interests in commercial property. Your questions require consultation with a real estate attorney and are too complex for this forum.