Leases are contracts in which people agree to rent a real property such as an apartment or tangible property such as a car. One party agrees to pay another for the use of the property for a set amount of money. A lease may be for a set duration, or either party may have the right to terminate it at any time.
Analysis of Lease Terms
What is a lease agreement and what does it require of lessors and lessees? Typically, lessors draft lease agreements, so the terms often tend to favor the lessor. In many leases, a lessors’ only obligation is to furnish the property in functional condition. Renters should carefully review a lease before signing to ensure that they fully understand all of the obligations that they are taking on.
Benefits of a Lease
While a lease is not necessarily required by law for two parties to have a valid rental agreement, it is generally advantageous to have one. It makes each party aware of his or her responsibilities and provides both parties with a remedy in the event that the lessor-lessee relationship goes south.
Ultimately, rental agreements protect both lessors and lessees by clarifying expectations and obligations. A good lease agreement should use plain and direct language, and every clause in a lease should be fully enforceable.