What does a property owner retain in a sale-leaseback arrangement?

In a sale-leaseback arrangement, the property owner sells the property to an investor while simultaneously entering into a lease agreement to continue occupying and using the property. This arrangement allows the seller to release equity tied up in the real estate while still retaining the right to use and control the property as a tenant.

The correct answer emphasizes that the original property owner retains both ownership and control of the property through the lease. While they no longer hold title in the sense that they are not the legal owner after the sale, they effectively retain control and the ability to operate the property as they see fit under the terms of the leaseback agreement. This setup often benefits the seller by providing immediate cash flow while maintaining operational control.

The other options do not accurately reflect the dynamics of a sale-leaseback arrangement. For instance, security of mortgage funding does not apply since the owner is selling the property outright. Title to the property without obligation implies that they would be free of responsibilities, which is not the case as they still have lease obligations. Lastly, property tax exemptions typically do not apply in a leaseback scenario, especially since the original owner is still utilizing the property, thus remaining responsible for property-related costs under the lease terms.