Lease agreements are contractual agreements between a lessor and a lessee that sets forth all the terms and conditions of a lease, which when executes triggers a transfer of a possessory interest in either residential or commercial property at a specified date when the lease commences. Under the terms of virtually all lease agreements, the lessor, or landlord, agrees to turn over possession of a property to the tenant, or lessee, and the tenant promises to pay rent at an agreed upon interval. These mutual promises are often called covenants, with the primary covenants being the landlord’s covenant to deliver quiet and habitable property, and the tenant’s covenant to pay rent on time. Lease agreements are used prolifically in all 50 states to effectuate transfers of possessory interests in real property, and can range in length from one page for small transfers of residential property in rural areas to thousands of pages for complex commercial real estate leases.
The most important elements of a lease agreement are the length of the lease, the amount of rent (generally paid in monthly intervals, though sometimes paid on an annual basis), and a description of the property involved. This description of property should be as detailed as possible, as the majority of litigation relating to lease agreements arise from a dispute over property that was or was not delivered to the tenant’s expectations. A typical lease agreement will contain a number of other provisions, such as grounds for termination, renewal procedures, explicit covenants and warranties (promises by each side to do or refrain from performing a certain action), applicable law in the case of a dispute, an arbitration clause, and several other provisions, either designed and included by the parties, or mandated by the governing jurisdiction.
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