BUILDING LEASE Meaning and
Definition
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A building lease refers to a legally binding agreement between a property owner, commonly known as the lessor, and a tenant, referred to as the lessee, for renting a building or premises. It is a contractual arrangement that grants the lessee the right to occupy and use the specified property for a specified period.
In a building lease, both parties have certain rights and obligations. The lessor typically agrees to maintain the property in a habitable condition, while the lessee agrees to pay rent on time and utilize the property for its intended purpose, among other stipulations specified in the lease agreement. The terms of the lease agreement may include the duration or term of the lease, the agreed-upon rent amount, any permitted modifications or alterations, and conditions for lease renewal or termination.
A building lease is commonly used in commercial real estate where businesses rent office spaces, retail stores, warehouses, or other commercial properties, but it can also apply to residential properties. It provides a legal framework and protection for both the lessor and the lessee in regulating their rights, responsibilities, and relationships during the lease period. Disputes or issues arising from the building lease are typically resolved according to the terms outlined in the lease agreement or through legal means if necessary.
Etymology of BUILDING LEASE
The etymology of the term "building lease" can be traced back to the Middle English word "bilding" which means a structure or edifice. The word "lease" comes from the Old English word "lǣs" meaning "to gather, or pasture" which referred to the granting of the use or occupation of land in exchange for a payment. Over time, the term "building lease" specifically emerged to refer to the legal agreement or contract that grants the tenant the right to construct, occupy, and use a building on a specific piece of land for a defined period, typically in exchange for rent payments.
