Sale Leaseback

A transaction in which the buyer leases the property back to the seller for a specified period of time.

When a seller deeds property to a buyer for a payment, and the buyer simultaneously leases the property back to the seller.

In a sale-leaseback arrangement - also known as a leaseback - an owner sells his or her property, and then immediately leases it back from the buyer as part of the same transaction.

This way, the seller gets the profits from the sale while keeping possession and use of the property, while the buyer is assured immediate long-term income on the property.

Sale-leaseback transactions are most commonly used in commercial real estate, but can also apply to commercial vehicles and other types of property.