Concepts Definitions
Leasehold Estate (Nonfreehold Estate): An interest in real property that permits possession for a specified time period, held by a tenant. It is created by a lease agreement.
Lessor/Landlord: The owner of the property who grants the lease to a tenant.
Lessee/Tenant: The party who receives the right of possession and use of the property under a lease agreement.
Lease Agreement: A contract between a tenant and a landlord that grants the tenant legal tenancy rights. For a valid lease, it typically requires named competent parties, consideration (rent amount), the term of the lease, and a legal description of the property. Leases for more than one year must be in writing.
Rent Amount: The agreed-upon monetary consideration exchanged for the use of the property. This amount must be specified in the lease.
Term of the Lease: The specific duration or period for which the lease agreement is in effect. This determines the type of leasehold interest (e.g., estate for years, periodic tenancy).
Property Description (Legal Description): A clear and unique identification of the parcel of land involved in the transaction.
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