What is a lease considered in legal terms?

A lease is considered in legal terms to be both an instrument of conveyance and a contract. This dual nature is important to recognize, as it encompasses the legal framework within which leases operate.

As an instrument of conveyance, a lease transfers the right to use and occupy property from the lessor (the landlord) to the lessee (the tenant) for a specified period and under specific conditions. This means that while the ownership of the property does not change, the lease grants the tenant certain rights to use the property, which are legally enforceable.

Simultaneously, a lease functions as a contract because it establishes a legal agreement between the parties involved. This contract outlines the rights and responsibilities of both the landlord and tenant, including payment terms, maintenance obligations, and conditions under which the lease can be terminated. The presence of legal elements in a lease, such as offer, acceptance, and consideration, solidifies its status as a contract.

Understanding this definition of a lease is crucial for real estate professionals, as it influences how they draft, interpret, and enforce lease agreements in practice.