A Lease Agreement is a contract between the lessor (owner) and the lessee (user) calling for use of lessor’s asset by the lessee for up to the time of the full payment clearance by the lessee to own the asset in the end.
A Lease is an agreement between the lessor (owner) and lessee (user) calling for the use of an asset on credit basis. Assets such as vehicles, property, industrial equipment, buildings, agricultural or industrial land are among the most common leaseable assets.
Difference between Lease and Rent
If a person does not have ample capital to buy the asset but still wants to use it while paying for its full amount in monthly installments then the option of Lease is taken. The asset ownership rights are transferred to the lessee once the full payment of the asset is cleared as per the lease agreement.
Whereas, Rent is defined as the use of an asset and paying for it on a monthly basis without the intention to own the asset. The ownership rights of the asset are not transferred to the lessee in rental contracts.
Breaking a Lease Agreement
The breach of a lease agreement or lease contract by either party (Lessee) or (Lessor) can cause legal complications that may end up resolving the issues in courtrooms.
It must also be noted that both of the one-page lease agreement and a detailed lease agreement are legally binding agreements.
Lease Agreement Template
This Property Lease Agreement is settled on [Date of Agreement] By/Between Lessor/Landlord [Name of Lessor] And Lessee/Tenant [Name of Lessee].
The Lessor/Landlord thus agrees to rent out the property situated in/at [Address of Property] for a period of 1 year, and shall begin and end, or maybe renewed subsequently, on the pre-approved sum of US$ [Amount of $] to be paid every month, and the US$ [Amount of $] to be reimbursed upon the completion of the leasehold.
Lease Agreement Terms and Conditions
The leased property shall only be utilized for the purpose of residence.
The tenant thereby consents to endow for any utilities or services utilized in the leased property upon the continuity of the leasehold.
The leased property holds the below-mentioned furnishings:
- Gas stove,
- Microwave oven,
- 6 cubic ft. Refrigerator,
- Fully automatic washing machine.
Any damaged or repairs shall be propped up by the tenant.
The Lessor/Landlord and the Lessee/Tenant hereby agrees and understands all the terms and conditions set forth in the leasehold.
Signed on [Date of Signatures],
Signature of the Landlord/Lessor,
Signature of the Tenant/Lessee.
Stamp by the Notary: