Lease Agreement Meaning And Definition

A lease is a contractual agreement that obliges the lessee (user) to pay the lessor (owner) for the use of an asset. [1] Real estate, buildings and vehicles are common assets that are leased. Industrial or commercial equipment is also rented. The narrower term “lease” describes a lease whose physical purpose is land (including a vertical section such as airspace, building or mine). A premium is a sum paid by the tenant for the lease to be granted or to guarantee the lease of the former tenant, often to ensure a low rent, in long rental contracts called inheritance tax. For some parts of buildings, most often it is that users pay a service fee, including through an ancillary contract or through the same contract, which is normally an explicit list of services in a rental agreement, in order to minimize disputes over service fees. A gross rental or lease agreement provides for rent that amounts to the total amount due, including all service charges. If the tenant does not respect the conditions of his lease, the lessor can legally terminate the lease and distribute the tenant. In this case, the tenant may be ordered to pay the remaining months of the lease as well as an additional amount for the breach of the lease. If the lease ends under normal circumstances, the tenant must inform the landlord in advance of their intention to move.