DEFINITION of 'Lease '

A legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid.


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Leases are the contracts that lay out the details of rental agreements in the real estate market. For example, if you want to rent an apartment, the lease will describe how much the monthly rent is, when it is due, what will happen if you don't pay, how much of a security deposit is required, the duration of the lease, whether you are allowed to have pets, how many occupants may live in the unit and any other essential information. The landlord will require you to sign the lease before you can occupy the property as a tenant.

  1. Fixed Price Purchase Option

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  2. Capitalized Cost Reduction

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  3. Graduated Lease

    A type of long-term, typically for commercial property, lease ...
  4. Capital Lease

    A lease considered to have the economic characteristics of asset ...
  5. Capitalized Lease Method

    An accounting approach that identifies a company's lease obligation ...
  6. Leaseback

    An arrangement where the seller of an asset leases back the same ...
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