What is a Lease in real estate?

A lease in real estate refers to a contract between a landlord (lessor) and a tenant (lessee) that outlines the terms and conditions under which the tenant may use and occupy the property owned by the landlord. This contract usually specifies crucial information such as the duration of the rental period, the amount of rent due, the responsibilities of both parties regarding maintenance and repairs, and any restrictions on the use of the property.

By clearly defining these aspects, a lease serves to protect the rights and obligations of both the landlord and the tenant, ensuring there is a mutual understanding of how the property will be used and under what conditions. This documentation is essential in real estate transactions, as it provides legal protection in the event of disputes.

Other options do not accurately capture the meaning of a lease. A temporary agreement between two property owners does not encompass the specific elements and relationships defined in a lease. Documentation of local housing regulations relates more to legal compliance than to the direct agreement concerning rental terms. Meanwhile, a guideline for property pricing is more about market rates and valuations rather than the specific terms of occupancy and rental arrangements that a lease entails.