This article would tackle everything about lease agreement, as well as the term rent. In fact, the only aspect that is common to them is the fact that they were all contracted by two parties, the lesser and the lessee for lease agreement, and the owner and renter for that matter.
Lease as defined is a legally binding contract between a lesser, (the owner) and the lessee (renter). Lease agreement defines all the rules (terms and conditions) which cover the transaction involving the lease time or the duration of the lease and the pertinent condition of the property or merchandise upon return of the lessee to the lesser. Lease payment amount, schedule of payment and penalties for delay of payments can also be stated in the said contract.
The lease contract may be a short term one (weeks or months) or it can extend up to a number of years depending on the agreement. Example of long term lease that go for more than ten years is a small business, like retail store but it is very rare for apartment lessee because one need not rent an apartment for so long if possible.
This agreement is ought to protect both lesser and lessee. The contract itself is an advantage for the lesser because it causes the lessee to pay promptly; on the other hand, it is an advantage also for the lessee because the contract gives him/her full rights on the property or merchandise stated therein, as well as a security for sudden seizure of the lesser of the contracted property or merchandise. It serves as a guarantee also that the payment or lease terms will not alter until the expiration of the lease term, as long as the terms and conditions stated therein are being followed religiously.
The term rent on the other hand is equivalent to a payment of certain amount stated in a contract between the owner and the renter at a particular interval or schedule. It is being placed for the right that was given by the owner to the renter in the usage or occupancy of the property or the merchandise of the former.
Now that the two terms has been defined clearly, you can choose now what proper term is to be used when entering contracts of the like.
3 comments:
Thanks so much for the information. Great real estate stuff.
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Has anyone done a short sale in Real estate? Let me know what the lenders are looking for. Anyway thanks for this great post.
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wow! a good job on defining the differences of lease and rent.
i should make this my guide on leasing and renting properties.
thank you so much for this very informative and useful article.
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