Premium membership allows the Resident to own land, with the first 512m² free of the usual monthly Land Use Fee (referred to by residents as Tier, because it is charged in tiers). There is no upper limit on tier; at the highest level, the user pays US$195 for their first 65536m², and then US$97.50 per each additional 32768m² of land. Any land must first be purchased from either Linden Lab or a private seller.

There are three types of land regions; Mainland, Private Region and Openspace. A region comprises an area of 65536m² (16.1943 acres) in area, being 256 meters on each side. Mainland regions form one continuous land mass, while Private regions are islands. Openspace regions may be either Mainland or Private, but have lower prim limits and traffic use levels than Mainland regions. The owners of a Private region enjoy access to some additional controls that are not available to mainland owners, for example they have a greater ability to alter the shape of the land. Residents must own a region (either Mainland or Private) to qualify for purchasing an Openspace region.

Linden Lab usually sells only complete 65536m² (16.1943 acres) regions at auction (although smaller parcels are auctioned on occasion, typically land parcels abandoned by users who have left). Once a Resident buys land they may resell it freely and use it for any purpose that it is not prohibited by the Second Life Terms of Service.

Residents may also choose to purchase, or rent, land from another Resident (a Resident landlord) rather than from Linden Lab. On a Private region, the built in land selling controls allow the landlord to sell land in the region to another Resident while still retaining some control. Residents purchasing, or renting, land from any other party than Linden Lab are not required to hold a Premium membership nor to necessarily pay a Tier fee, although typically the landlord will require some form of upfront and/or monthly fee to compensate them for their liability to pay the Land Use Fee charged by Linden Lab. However Linden Lab acknowledges only the landlord as the owner of the land, and will not intervene in disputes between Residents. This means, for example, that a landlord can withdraw a Resident's land from availability, without refunding their money, and Linden Lab will not arbitrate in the dispute.