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Simple English definitions for legal terms
irredeemable ground rent
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A quick definition of irredeemable ground rent:
An irredeemable ground rent is a type of payment made by a tenant to a landlord for the use of undeveloped land, usually for the construction of a commercial building. It is also a heritable interest in rental income from land, reserved by a grantor who conveys the land in fee simple. This type of ground rent is found primarily in Maryland and Pennsylvania. It cannot be redeemed or bought out by the tenant and is paid indefinitely.
A more thorough explanation:
Definition: Irredeemable ground rent is a heritable interest in rental income from land, reserved by a grantor who conveys the land in fee simple. This type of ground rent is found primarily in Maryland and Pennsylvania.
Example: A property owner in Maryland conveys their land in fee simple to a buyer, but reserves the right to collect a yearly rental income from the land. This rental income is an irredeemable ground rent, as it cannot be redeemed or bought out by the buyer.
This example illustrates how an irredeemable ground rent is a type of rental income that is reserved by the original property owner, even after the land is sold. The buyer of the land must continue to pay the rental income to the original owner, as it is a heritable interest that cannot be redeemed or bought out.