a contractual arrangement calling for the user (referred to as the lessee) to pay the owner (the lessor) for use of an asset.[1] Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased. Broadly put, a lease agreement is a contract between two parties: the lessor and the lessee. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments.

Types Of Leases

A lease in which the asset is tangible property. Here, the user rents the asset land or goods let out or rented out by the owner the verb to lease is less precise because it can refer to either of these actions. Examples of a lease for intangible property include use of a computer program similar to a license, but with different provisions, or use of a radio frequency (such as a contract with a cell-phone provider.

A periodic lease agreement (most often a month-to-month lease) internationally and in some regions of the United States

Judgment also has legal definitions and refers to “a judicial decision given by a judge or court” or “the obligation, especially a debt, arising from a judicial decision.” A judge awards a judgment to a creditor that needs to collect money from a debtor. A court can also give a judgment in favor or against a defendant.

Names of the parties of the agreement.

The starting date and duration of the agreement.

Identifies the specific object (by street address, VIN, or make/model, serial number) being leased.

Provides conditions for renewal or non-renewal.

Has a specific consideration (a lump sum, or periodic payments) for granting the use of this object.

Has provisions for a security deposit and terms for its return.

May have a specific list of conditions which are therein described as Default Conditions and specific Remedies.

May have other specific conditions placed upon the parties.

Need to provide insurance for loss.

Restrictive use.

Which party is responsible for maintenance.

The lease will either provide specific provisions regarding the responsibilities and rights of the lessee and lessor, or there will be automatic provisions as a result of local law. In general, by paying the negotiated fee to the lessor, the lessee also called a tenant has possession and use (the rental of the leased property to the exclusion of the lessor and all others except with the invitation of the tenant. The most common form of real property lease is a residential rental agreement between landlord and tenant.