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What is a lease?

A lease is a legal contract that allows one person to transfer the right to use an immovable property to another person for a certain period of time and a certain amount of money or other benefits. The person who transfers the right can specify the terms and conditions of the lease explicitly or implicitly. The person who receives the right can pay the agreed amount as a lump sum or as rent for the immovable property in periodic payments.

Understanding Lease

A lease is a legal contract that sets out the terms and conditions of renting a property or an asset from another party. The lease specifies the rights and compulsions of both the landlord (the owner of the property or asset) and the tenant (the user of the property or asset) for a certain period of time and a certain amount of money. For instance, a lease for a residential property may include:

  • The address of the property

  • The responsibilities and roles of the landlord and tenant

  • The amount of rent and security deposit

  • The date of rent payment

  • The consequences of breaking the contract

  • The duration of the lease

  • The rules about pets

  • Other important information

Not every lease is the same, but they all have some common elements. These include the rent amount, the rent payment date, and the lease's end date. The tenant has to sign the lease before moving into the property, agreeing to follow its terms. Most residential leases are standard with the same terms for all tenants. However, commercial leases are customized according to the specific tenant and usually last from one to 10 years, with larger tenants often having longer and more complex lease agreements. The landlord and occupant should keep a copy of the lease for their records in case of any future disputes.