How is a lease classified in real estate?

In real estate, a lease is classified as a contract that grants the use of property for a specified time in exchange for rent. This classification emphasizes the nature of a lease as a legal agreement between a landlord (lessor) and a tenant (lessee). The lease establishes the terms and conditions under which the tenant is allowed to occupy or use the property, detailing aspects like the duration of the lease, rental payment amounts, and obligations of both parties.

This classification focuses on the temporary nature of the arrangement, where the tenant receives the right to use the property without transferring ownership. While the lease is a legal document, it is specifically not for the purpose of purchasing property, nor is it merely a maintenance agreement. It also does not pertain to a sale, as that involves transferring ownership rights, which is distinct from a lease where ownership remains with the landlord. Understanding this classification is crucial in recognizing the different types of contracts in real estate transactions and how they function.