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Have you heard of the term “land lease”? A land lease is when a landowner leases out their land to a tenant. The tenant owns the home, but the owner owns the land. It seems simple enough, but they can be tricky to deal with in certain circumstances.

Land leases are common in California, but we don’t see them a lot here in San Diego. We did have one come up recently in Malibu that we were able to nullify by doing some detective work. Here’s the situation: The land lease was recorded in 1967 with a 99-year term, but something happened in 2012. They did two separate grant deeds, one for $440,00 and one for $1.2 million, which alerted us that something was wrong.


“Land leases are more common with manufactured and mobile homes. “


We were able to determine that they did sell the land separately, and the termination of the land lease was recorded on the wrong property. We figured it out and released it from our property in question. It is no longer a land lease.

Back in 1967, I’m sure they realized they had a prime piece of real estate and wanted to come up with another source of income. Land leases are a way to do that. It’s more common in manufactured homes and mobile home parks, but they do pop up with single-family homes once in a while.

If you have questions about this topic or anything else, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.