Ground leases are primarily characterized by what feature?

Ground leases are primarily characterized by the ability for tenants to own improvements on the land. This type of lease structure typically involves a long-term agreement between the landowner and the tenant, where the tenant has the right to develop and use the land for a specified period. During this time, the tenant can construct buildings or make other improvements that they own, even though the land itself remains under the ownership of the lessor. This is particularly advantageous for tenants as it allows them to invest in and enhance the value of their leased space without acquiring the land itself, which is often a significant financial burden.

The other options depict characteristics that do not align with the fundamental nature of ground leases. For instance, ground leases are usually long-term, often exceeding 30 years, which contradicts the assertion of a short duration. Additionally, the immediate transfer of property to the tenant upon signing does not occur in a ground lease scenario; the tenant gains rights to use and develop the land rather than owning it outright. Lastly, liability for property taxes is typically retained by the landowner, not limited in terms of the tenant's responsibilities. Therefore, the correct understanding of ground leases aligns most closely with the tenant's ownership of improvements made on the land.