Legal Definitions - lessor

A lessor is the legal term for an individual or entity that owns property and grants another party, known as the lessee, the temporary right to use that property through a formal agreement called a lease. In essence, the lessor is the owner who rents out their property, whether it's real estate (like land or buildings) or personal property (like equipment or vehicles). When the property is real estate, the lessor is commonly referred to as a landlord.

Here are a few examples to illustrate the concept of a lessor:

• Example 1: Residential Real Estate

  Maria owns a duplex and decides to rent out one of the units. She signs a one-year lease agreement with David, allowing him to live in the unit in exchange for monthly rent.

  In this scenario, Maria is the lessor (and specifically, the landlord) because she owns the property and has entered into a lease agreement to grant David temporary possession and use of her residential unit.

• Example 2: Commercial Real Estate

  "Downtown Properties LLC" owns a large shopping mall. They sign a ten-year lease agreement with "Fashion Boutique Inc." for a retail space within the mall.

  "Downtown Properties LLC" is the lessor because, as the property owner, it is providing "Fashion Boutique Inc." with the temporary right to occupy and use a commercial space in its building under a lease agreement.

• Example 3: Personal Property (Equipment)

  "Tool & Machine Rentals" owns a wide range of industrial equipment. They lease a specialized forklift to "Warehouse Logistics Co." for a six-month period to assist with a large inventory project.

  "Tool & Machine Rentals" acts as the lessor because it owns the forklift and is granting "Warehouse Logistics Co." temporary use of its personal property through a lease arrangement.