What does a lease represent in real estate?

A lease in real estate represents a temporary right to use a property. This agreement allows a tenant to occupy and use a property for a specified period while providing the landlord with rental income. The terms of the lease outline the rights and responsibilities of both the landlord and tenant, including rent payments, property maintenance, and duration of the lease. It does not convey ownership of the property; rather, it grants the tenant usage rights during the lease term.

In contrast, a permanent transfer of ownership, which suggests an irrevocable transaction of property rights, is not applicable in the context of a lease. Additionally, an option to purchase property refers to a separate agreement that gives a tenant the right to buy the property at a later date, which is distinct from leasing. A security interest in property, usually linked to a mortgage or lien, gives the lender rights over the property in case of default, but it does not pertain to the rights of a tenant under a lease. Thus, the definition of a lease aligns distinctly with the concept of providing temporary rights rather than ownership or permanent interests.