Leasing

By

Saqib Ansari

Posted Date: Tuesday, December 05, 2006 | Viewed: 167
Posted In Category: Article Directory > Business and Finance > Insurance and Leasing Articles
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A lease or tenancy is the right to use or occupy personal property or real property given by a lessor to another person (usually called the lessee or tenant) for a fixed or indefinite period of time, whereby the lessee obtains exclusive possession of the property in return for paying the lessor a fixed or determinable consideration (payment).

In law, there are two types of property:

Real property is land or any permanent feature or structure above or below the surface. Ownership of land is an aspect of the system of real property or realty in common law systems (immovables in civil law systems and Conflict of Laws).

All other property is considered personal property or personalty in common law systems (movables in civil law and Conflict of Laws), and this property is either tangible or intangible, i.e. it is either physical property that can be touched like a computer, or it is an enforceable right like a patent or other form of intellectual property.

There are three separate levels of rights or interests affecting both forms of property. In descending order of importance they are:

ownership
possession
control and use.

The legal documents that transfer these rights are respectively: conveyance/transfer, lease/tenancy, and bailment/pledge for tangible personalty, assignments and licenses for intangibles.




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