Post
Question
In a rental arrangement, to make it legally binding, a lease agreement is prepared between the two parties, landlords and tenants. A lease ensures that there are a certain set of rules which the both parties should abide by and are enforceable. The two parties involved are also known as lessor and lessee. In this answer, I shall talk about who is lessor and lessee and let you know a few details about the lease agreement as well.
Difference between lessor and lesseeHere is a quick table for you to spot difference between lessor and lessee.
| Lessor | Lessee |
Lessor is a landlord who owns the property which the lessee intends to rent |
Lessee is the tenant who occupies the lessor’s property in exchange of monthly rent payment |
Lessor gives the rights to occupy and use the property for commercial or residential purposes |
Lessee, according to the contract can use the residential or commercial property and is responsible to take care of the assets in there |
The lessor enjoys reduced rights over the property during the lease agreement |
The rights to use the property are handed over to the lessee with certain rules and obligations |
Lessor can evict the lessee without notice if the lessee is found to be involved in unlawful practices |
Lessee can exercise his/her right to not evict the property if the reasons sighted by the landlord are invalid. |
Any major maintenance on the asset is the responsibility of the lessor |
Lessee has the right to pay fair rent to the lessor as per the agreement |
According to the lease agreement and the rules made around it in the Indian law suggest the following:
The lessee cannot stay in the property for more than the lease agreement period
The lessor cannot hike the rent out of contract
The lessee has to give a prior notice to the lessor if they wish to vacate the property or extend their agreement
Under no circumstances can lessee undertake any illegal or unlawful activity. He/she cannot make any structural changes to the property or sub let it to other parties. In case, anything happens, lessor has the right to demand the tenant eviction without prior notice
Any major expenses on the repair and maintenance shall be paid for by the lessor. However, it is the lessee's duty to take care of the assets.
I hope all of this information helps you know who is lessor and lessee and difference between difference between lessor and lessee.
In the area of property leasing agreements, the connection between a lessor and a lessee is common. A lease is a legal agreement in which the lessor offers their asset to the lessee for their use. Although the lessor and lessee meaning are clear from their definition, there are a few important differences that I have included below for your reference.
To put it in simple language, the lessor is the landlord and the lessee is a tenant. A legally bounded lease agreement that specifies the terms and circumstances usually governs the relationship between the lessor and lessee.
You can check the difference between lessee and lessor from the below table:
| Particular | Lessor | Lessee |
|---|---|---|
Compensation |
The entire lease amount is what the lessor receives in exchange for providing the asset to the lessee for a lease. |
They pay the lease in exchange for having the property for a brief period. |
Status |
Legal owner of the property. |
Only a borrower and has no legal ownership status. |
Asset Possession |
The asset is not possessed by the lessor. |
The asset possessed is with the lessee. |
Wear and Tear of the Assets |
It is the lessor's duty as the owner to look after the properties and cover the cost of maintenance and repairs. |
Lessee's liability is restricted to the time he or she using the property. The agreement also outlines who is responsible for what repairs and maintenance. |
Risk |
Takes the risk of ownership, including obsolescence and depreciation. |
Without the responsibilities of ownership, risk is restricted to the lease's terms and conditions. |
Utility Bill Payment |
The lessor is not liable for utility bill payments. |
Until the property is with the lessee, he or she will pay the utility bill. |
I hope you get an idea of who is called lessor and lessee along with their differences.
Create a Rental or Lease Agreement Online Easily via NoBroker. Read more -What is the Difference between Lease and Rent?
Who is lessor and lessee?
Sakshi
✔In Progress
👁1005
Views
August 12, 2021
2021-08-12T11:56:29+00:00 2021-08-12T23:19:36+00:00Comment
2
Answers
Rent and Lease
Share