WHAT IS A LEASE? - Understanding Commercial Leases - Part 1

Here is Part 1 of a multi-part series on Understanding Commercial Leases.

Let's start at the beginning with some basic background info.

What is a Lease?

A lease is a CONTRACT by which one CONVEYS real estate, equipment or facilities for a SPECIFIED TERM and for a SPECIFIED RENT.

CONTRACT - A legally enforceable, binding agreement between 2 or more persons or parties

CONVEY - To transfer or deliver to another

SPECIFIED TERM - A limited or definite period of time

SPECIFIED RENT - An agreed sum, paid at fixed intervals, made by a tenant or occupant of property, to the owner, for POSSESSION and USE of the property

LANDLORD / LESSOR - Owner of property that is leased or rented to another

TENANT / LESSEE - One who holds or possesses property owned by another