Lease
A written rental agreement for a fixed term, usually a year. Both sides are bound by it until the end date. Breaking it early usually costs money.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
The lease is the document a buyer of a rental reads first, because they are buying it along with the building. Its end date, its rent and its rules decide what the buyer can do and when.
Part 2 of 4
A simple example
Your rental has a twelve-month lease at $1,400 with five months to run and no early termination clause. An investor reads it before making an offer.
| What the buyer reads | Why |
|---|---|
| The end date | When they can raise rent, renovate or move in |
| The rent and deposit | The income and the liability they take on |
| Any renewal or termination terms | Whether the tenant can stay past the date |
A lease is a contract that survives the sale. The buyer signs up to it by buying.
Part 3 of 4
What people get wrong
That the buyer can rewrite the lease after closing. They step into it as written, until it ends.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
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