What is land lease right in SAP RE - Real Estate Management?

SAP Term: land lease right

• Component: RE

• Component Name: Real Estate Management

• Description: A saleable and heritable right to own a structure on or below the surface of real estate belonging to another. This right differentiates between the owner of the real estate estate and the owner of the building the holder of the land lease. The holder of the land lease pays ground rent rent to the lessor for the right to use the land. The land lease right is registered in a separate land register, called the leasehold land register. Normally, a land lease has a term of 99 years for residential buildings, and a shorter period for commercial buildings.

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• Key Concepts: 
  Land lease right is a term used in SAP Real Estate Management (RE-FX) to refer to the right of a tenant to use a piece of land for a certain period of time. This right is usually granted by the owner of the land and is subject to certain conditions and restrictions. The tenant pays a fee for the right to use the land, which is known as rent. 
  
  How to Use it: 
  In SAP RE-FX, land lease rights are managed through the Land Lease Right (LLR) component. This component allows users to create and manage LLRs, as well as track payments and other related information. The LLR component also provides users with an overview of all LLRs in the system, allowing them to easily monitor their status. 
  
  Tips & Tricks: 
  When creating an LLR in SAP RE-FX, it is important to ensure that all relevant information is entered correctly. This includes the start and end dates of the LLR, as well as any restrictions or conditions that may apply. Additionally, it is important to ensure that all payments are tracked accurately in order to avoid any potential issues down the line. 
  
  Related Information: 
  For more information on SAP RE-FX and its components, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials and guides on how to use SAP RE-FX and its components.