Home › Finance › Real Estate & Property › Lease

Lease

LEES /liːs/

nounverbB1TOEFLIELTS

formalbusiness

A contract by which one party grants to another the use and possession of land, a building, or other property for a specified period, in return for rent.

A lease typically implies a longer-term agreement with more formal terms than a simple 'rental agreement', though the terms are often used interchangeably in casual conversation.

The story behind the word. The word 'lease' comes from the Old French verb 'laisser', meaning 'to let, to leave, to permit'. This perfectly captures the essence of a lease: it's an agreement that 'lets' someone use property, or 'leaves' it in their possession for a set period. So, when you lease a property, you're being 'permitted' to use it.

Word relationships

Rental agreement: Often used interchangeably, but 'lease' can imply a longer, more formal contract.
Tenancy agreement: Common in British English, refers specifically to the agreement between landlord and tenant.

Word family

lessee (noun): The person who holds the lease; the tenant.
lessor (noun): The person who grants the lease; the landlord.

Collocations

sign a lease
lease agreement
commercial lease
residential lease
lease term

Example sentences

"Before moving in, the new tenant had to sign a one-year lease agreement for the apartment." Signing a lease is a significant commitment.
"The company decided to lease a new office downtown rather than purchase a building outright." Businesses often lease office space.

Memory hook

You LEAVE your old place and get a LEASE for a new one. Let to use

When not to use

Don't use 'lease' when referring to a short-term, informal arrangement, like borrowing a friend's car for an hour.

Fun facts

The terms 'lessee' and 'lessor' are direct derivatives of 'lease', referring to the tenant and landlord respectively, from the French 'laisser'.