“Lessee” and “lessor” are legal terms commonly used in real estate and contract law. They are often confused due to their similar spelling and pronunciation. However, they refer to different parties in a leasing agreement. A “lessee” is the tenant who holds the lease, while a “lessor” is the landlord or the person who grants the lease.
Lessee
Definition:
“Lessee” refers to a person or entity that holds the lease of a property or asset; essentially, the tenant who rents or leases from the owner.
Examples of use:
The lessee makes the rental payments on the 15th of every month. (Refers to the tenant who is responsible for paying rent.)
The lease agreement specifies that the lessee must keep the premises in good condition.
As the lessee, John has the right to use the apartment for the duration of the lease term.
Lessor
Definition:
“Lessor” refers to a person or entity that grants a lease; the owner or landlord who leases out the property or asset.
Examples of use:
The lessor keeps full ownership rights of the apartment. (Refers to the landlord who owns the property.)
According to the contract, the lessor is responsible for major repairs to the building.
The lessor agreed to renew the lease for another year under the same terms.
In a leasing agreement, the “lessee” is the tenant who receives the right to use the property, while the “lessor” is the landlord or property owner who grants the lease. Understanding these terms is crucial for correctly interpreting lease agreements and communicating effectively in real estate transactions.
