Which statement best describes Sale and Rent Back?

Which statement best describes Sale and Rent Back?

• A. The seller sells the home and immediately rents it back from the buyer under a fixed tenancy
• B. The buyer borrows against the property but never rents
• C. The homeowner sells the property and must move out immediately
• D. The homeowner rents from the buyer without selling the home

Answer: (A)

Sale and Rent Back means the homeowner sells the property and immediately enters into a tenancy to continue living there, with the buyer becoming the new owner and landlord. The key idea is both selling the home and renting it back from the new owner under a fixed tenancy, so the occupier can release capital while remaining in residence. This is why the described option fits best: it explicitly states selling the home and then renting it back under a fixed tenancy. The other descriptions miss one or both elements—either there’s no sale, or there’s no ongoing occupancy, or there’s no sale at all—so they don’t describe sale and rent back accurately.

Sale and Rent Back means the homeowner sells the property and immediately enters into a tenancy to continue living there, with the buyer becoming the new owner and landlord. The key idea is both selling the home and renting it back from the new owner under a fixed tenancy, so the occupier can release capital while remaining in residence. This is why the described option fits best: it explicitly states selling the home and then renting it back under a fixed tenancy. The other descriptions miss one or both elements—either there’s no sale, or there’s no ongoing occupancy, or there’s no sale at all—so they don’t describe sale and rent back accurately.