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lease

A lease refers to a contract  in which one party , the lessor , grants another party, the lessee , the right to possess and use property  for a specified period of time in exchange for consideration , typically rent . Leases may involve real property , such as residential or commercial premises, or personal property , such as equipment or vehicles.

Although the lessee obtains the right of possession during the lease term, the lessor retains ownership of the property. The rights and obligations of the parties—including payment terms, maintenance responsibilities, and conditions for termination—are governed by the lease agreement and applicable law. In the context of real property, leases are generally regulated under landlord-tenant law .

[Last reviewed in March of 2026 by the Wex Definitions Team
]

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