What is a "lease agreement"?

A lease agreement is a legal contract between a landlord and a tenant that outlines the terms and conditions for renting a property. This document specifies important details such as the duration of the lease, the amount of rent to be paid, the responsibilities of both the landlord and tenant, and any rules or regulations pertaining to the rental property.

The essence of a lease agreement is to ensure that both parties are clear about their rights and obligations throughout the rental period, helping to prevent disputes. It is crucial for tenants to understand these terms, as they govern aspects such as maintenance responsibilities, security deposits, and the process for renewing or terminating the lease.

Other choices do not accurately describe a lease agreement. A contract for the sale of property pertains to the purchase and transfer of ownership, rather than rental. A document detailing the transfer of ownership relates more to deeds or title transfers, while a format for financial transactions typically refers to loan agreements or promissory notes rather than a lease.