====== Lease ======

A **lease** is a **contract** between a **lessor** (owner) and a **lessee** (tenant) that grants the tenant the **right to possession and use** of real property for a specified period of time in exchange for rent.

===== Essential Elements =====
  * Competent parties
  * Mutual consent
  * Lawful objective
  * Consideration (rent)
  * Description of the premises
  * Term of the lease

===== Key Characteristics =====
  * Transfers **possession**, not ownership
  * Creates a **leasehold estate**
  * May be **written or oral** (longer terms generally must be written)
  * Rent may be paid in money, services, or a share of profits

===== Common Types of Leases =====
  * **Gross Lease**
    * Tenant pays rent; landlord pays expenses (taxes, insurance, maintenance)

  * **Net Lease**
    * Tenant pays rent plus some or all expenses
    * Types: single-net, double-net, triple-net (NNN)

  * **Percentage Lease**
    * Rent based on a percentage of tenant’s gross sales
    * Common in retail

  * **Ground Lease**
    * Tenant leases land and usually builds improvements
    * Improvements typically revert to owner at lease end

===== Lease vs Rental Agreement =====
  * **Lease** → fixed term, terms cannot change without agreement
  * **Rental Agreement** → periodic, terms can change with proper notice

===== Exam Tip =====
  * A lease creates **exclusive possession** for the tenant
  * A lease is a **contract**, not a conveyance of title