Who is lessee

Time Traveler for lessee The first known use of lessee was in the 15th century See more words from the same century. Style: MLA. English Language Learners Definition of lessee. Legal Definition of lessee. Get Word of the Day daily email! Test Your Vocabulary.

Test your vocabulary with our question quiz! Love words? The answer to both of these questions is no , but in this article, you will learn the actual meaning of both lessor and lessee. In this article, I will compare lessee vs. I will also outline a helpful memory tool that you can use to decide whether lessee or lessor better describes the party to whom you refer.

What does lessee mean? In a financial contract, the lessee is the person to whom something is rented or loaned. If you are renting a car from a dealership, for instance, you are the lessee. That means the lessee is a tenant who has to fulfill all the imposed obligations as per lease agreement.

The major obligation includes timely payment of periodical lease rents. It also includes all the terms and conditions, including the tenure of the lease. During the lease agreement, the lessor retains the right of ownership of the property and has the right to receive periodic payments from the tenant based on the agreement.

In simple terms, it means giving the asset on hire or rent. Ltd wants to start a new production unit in the industrial area of South Dakota State. Wayne approaches ABC Rental Company that informs Wayne that Stark Industries has recently winded up their business, and their property, including factory premises, is available for leasing. Where Wayne Lessee gains possession of the property, and in turn, it gives Stark Lessor a periodical lease rent.

Home Ownership Renting. What Is a Lessee? Key Takeaways A lessee is a person who rents land or property, such as a vehicle. The person or entity the lessee rents from is the lessor. Most lessees must meet certain guidelines and restrictions when using the property, such as mileage limits on a leased vehicle.

Both lessees and lessors have rights and responsibilities related to rental property. A lessor must provide a lessee with reasonable notice if they want to enter the leased property. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Related Terms Lease Definition A lease is a legal document outlining the terms under which one party agrees to rent property from another party. Landlord Definition A landlord is a person or entity who owns real estate for rent or lease to a tenant.

Learn how landlords make money and what they can and cannot do. Open-End Lease An open-end lease is an agreement that requires the lessee to make a payment at the end of the term to purchase the asset.

What Is a Gross Lease?