Legal Terms in Real Estate -Terminologies & Words(C2)

C2. Real Estate Terms Related to Renting and Leasing Terms

82. Lessor

Lessor is the person (landlord) who leases out a property to a tenant or buyer (‘lessee’) of the property under a ‘Lease agreement’. Lessors define the rights and obligations of both parties in the lease agreement, and spell out the ways in which the tenant/lessee can or cannot use the property, including special privileges like early termination, renewal of the lease, etc.

83. Lessee

Lessee is the person (tenant or buyer) who holds the lease of a property and has the right to use it for the duration of lease as specified by the lessor/landlord.

84. Lease

A legal contract that allows someone to use an asset (lessee), such as a property, for a specific period, often in exchange for regular payments (rent). At the end of the lease term, the asset is returned to its owner (lessor).

85. Lease/Rent Agreement

Lease/rent agreement written contract between a property owner and a tenant that outlines the terms under which the tenant can use and occupy the property, usually in exchange for rent.

86. Leave and Licence Agreement

This allows a person to use a property for a period without transferring full rights over it, i..e, the leave and licence agreement grants only the permission to occupy the property. This is typically more flexible for home owners and can be terminated more easily than a lease.

87. Lease Term

The duration for which the lease agreement is valid, such as six months, one year, etc.

88. Lease Break

Ending a lease agreement before its specified term, which might result in penalties or charges for the tenant.

89. Month-to-Month Lease

A lease agreement that is renewed automatically every month until either the landlord or the tenant decides to terminate it.

90. Lease Renewal Option

A clause in a lease that allows the tenant the right to extend the lease term, often under predetermined conditions.

91. Notice Period

The amount of time (often 30 days) that a landlord or tenant must provide before making changes to or ending a lease agreement.

92. Rent

Regular payments made by a tenant to a landlord in exchange for living in or using their property.

93. Fair Market Rent

An estimate of the amount a property should rent for, based on current market conditions and comparable properties.

94. Security Deposit

A sum given by the tenant to the landlord as a safeguard for damages or unpaid rent, usually returned at the end of the lease, minus any deductions.

95. Maintenance Charges

Regular fees, separate from rent, that tenants might pay to cover upkeep of common areas and amenities in a property complex.

96. Rent Agreement Renewal

The act of extending the rent agreement after its initial term (typically 11 months), potentially with new terms or rent amounts.

97. Tenant Verification

A process where the landlord checks a potential tenant's background, financial stability, and rental history.

98. Vacate Notice

A formal communication in writing made from either landlord or tenant signalling the intent to end the lease and indicating the date by which the property should/will be emptied.

99. Eviction

The legal process of removing a tenant from a rental property, usually due to violation of lease terms or non-payment of rent.

100. Sublease (or Subletting)

An arrangement where the original tenant rents out the property (or a portion of it) to another party. The primary lease with the landlord remains in the name of the original tenant.

101. Rental Yield

A percentage that shows the annual return from renting out a property in comparison to its market value.

102. Rent Control

Rent control is regulated by the Government regulations that limit the amount landlords can charge for rent and protect tenants from sudden or unreasonable rent increases.

Courtesy: ASSURE SHIFT

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