What describes a sale-leaseback arrangement?

A sale-leaseback arrangement is characterized by the owner of a property selling the property to another party and then immediately leasing it back from the new owner. This allows the original owner to access capital from the sale while still retaining the ability to use and occupy the property through the lease. This arrangement is often utilized by businesses to free up cash for operations or investments while still maintaining operational control of their property.

In this context, the first choice is inaccurate because, in a sale-leaseback scenario, the seller actually relinquishes ownership of the property as part of the sale process. The third option misrepresents the nature of a sale-leaseback, where the seller is certainly interested in retaining access to the property through the lease, as opposed to the buyer having no intention to occupy the property. The last choice suggests a negotiation that occurs prior to selling the property, which does not capture the typical structure of a sale-leaseback where the lease is usually established simultaneously with or immediately following the sale.