Lessor vs Lessee!!! A lease agreement is an arrangement between two parties – lessor vs lessee, by which the lessor allows the lessee the right to the use a property owned or managed by the lessor for a specified period of time, in exchange for periodic payment of rentals. So, who is the lessor? Who is the lessee?
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Lessor vs Lessee
Lessee Definition and Examples
A lessee is a person who takes a place may it be a bungalow an apartment, on rent.
Lessee Examples:
- The original lessee was not merely a guarantor or surety.
- Lessee uses vehicles for illegal activities.
- The lessee does not pay water charges, electricity charges, etc.
Lessor Definition and Examples
The one who gives his place on rent to a lessee is called a lessor.
Lessor Examples:
- The lessor can evict the lessee for failure to pay rent.
- The lessor then purchases the asset and leases it to the lessee.
- The lessor receives capital allowances against tax.
Lessor vs Lessee Examples
- The ulcer has perforated into the lessor omental bursa.
- Lessor shall carefully check the vehicles and their legal documents.
- The ownership of the leased equipment remains with the lessor.
- In an operating lease, the lessor retains the usual risks and rights of owning the asset.
- Being the lessor, a bank should perform a contract for sale and a contract for lease.
- At the end of the lease term, the residual value of the asset will belong to the lessee.
- The lessor then purchases the asset and leases it to the lessee.
- The lessee shall pay the rent in accordance with the contract.
- The lessee shall keep and use the lease item with due care.
- The identity certification or juristical competency certification of the lessee.
When to Use Lessee vs Lessor | Infographic
Confused Words: Difference between Lessee vs Lessor
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