Everything you need to know about lessee!
The terms ‘lessee’ and ‘lessor’ are almost always used in rental agreements. This is particularly true if the lease is for commercial or industrial premises.
In this post, we’ll go over the differences between a lessee and a lessor, as well as their distinct lease rights. Property rentals are frequent in metropolitan cities where a high number of people relocate for work. Because purchasing a home right away may not be affordable or practicable, the majority of them choose to rent. Here’s where leases come into play.
Lessee
A person who utilizes a structure or a piece of land on a lease is referred to as a lessee. He is not a tenant in the sense that a renter pays the owner of the property rent for the use of a room, building, or land. As a result, the lease is the only thing that distinguishes a tenant from a lessee.
In exchange for monthly rent and a security deposit, a lessee is granted permission to utilize the landlord’s property. Lessees’ rights and obligations are outlined in state rental property legislation.
Lessor
The lessor is the owner of a property who agrees to rent it out to a tenant under the terms of a lease. While a lessor allows a lessee to use his property, he retains entire ownership of the land. He can ask the lessee(s) to vacate the property with prior notice. Lessors’ roles and obligations are explicitly defined under state rental regulations.
Renting vs Leasing
Leasing is a legal arrangement that allows one person to use another person’s property for a certain length of time. Because all sorts of renting in the West – residential and commercial – are based on leases, the term ‘leasing’ is commonly used. However, in India, ‘lease’ refers to the rental of commercial premises, while renting refers to the renting of residential homes.
However, they aren’t just two terms that mean the same thing. Leasing a property differs from renting a property under a leave-and-license arrangement from a legal standpoint. In a lease agreement, the lessee and lessor are the two major parties.
It is prohibited to charge rent above the regular rate in locations where the Act’s restrictions apply. Such an offense is punished by up to three months in jail or a fine of up to Rs 5,000, or both.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
