A transaction that involves selling property to unlock liquid assets while leasing that property back is termed?

The term for a transaction in which property is sold to unlock liquid assets while simultaneously leasing that property back is known as a sale-lease-back. This arrangement allows the seller to receive cash from the sale while retaining possession of the property through a leasing agreement. It is a strategic financial move often utilized by businesses to free up capital for other investments or operational costs, while still having the necessary space or facilities needed for their operations.

In a sale-lease-back, the seller becomes the lessee and continues to use the property as before, but now they no longer own it. This kind of transaction can be beneficial for both parties: the buyer acquires the property as an investment, and the seller can effectively improve their liquidity without losing access to their operational space.

Other terms like equity transfer might sound relevant, but they generally refer to the transfer of ownership shares rather than the mechanics of leasing back property after a sale. Lease-option sale involves a different type of agreement where the lessee has an option to purchase the property after renting, which is not the same scenario. A short sale typically refers to selling a property for less than the amount owed on the mortgage, usually due to financial distress, which is also distinctly different from the sale-lease-back