Legal Definitions - parol lease

A parol lease refers to an oral agreement to rent real property. Unlike a written lease, which is a formal document signed by both parties, a parol lease is created through spoken words and mutual understanding. While many jurisdictions require leases for terms longer than one year to be in writing to be enforceable (due to a legal principle known as the Statute of Frauds), a parol lease for a shorter duration can often be legally binding. It establishes the same fundamental landlord-tenant relationship, outlining terms such as rent, duration, and property use, but without a physical written contract.

• Example 1 (Short-Term Residential Rental):

  Sarah needs a place to stay for three months while her house is being renovated. Her friend, Mark, has a spare room and verbally agrees to let her live there for $500 a month, payable on the first of each month, for exactly three months. They shake hands on the agreement.

  Explanation: This is a parol lease because Sarah and Mark created a rental agreement for real property (the spare room) entirely through spoken words and mutual consent, without any written contract. Since the term is less than one year, it would likely be considered a valid and enforceable parol lease in many jurisdictions.

• Example 2 (Temporary Commercial Space):

  A local artisan, David, wants to set up a pop-up shop in an empty storefront for the duration of the town's annual week-long festival. He speaks with the building owner, Ms. Chen, who agrees to let him use the space for $200 for the week. They discuss the hours of operation and the specific dates, and David pays Ms. Chen in cash.

  Explanation: This scenario illustrates a parol lease because David and Ms. Chen established a temporary commercial rental agreement verbally. The key terms of the lease—the property (storefront), duration (one week), and rent ($200)—were all agreed upon orally, making it a parol lease. Its short duration makes it legally permissible without a written document.

• Example 3 (Agricultural Land Use):

  Farmer Emily needs extra pasture for her sheep for the upcoming spring grazing season, which lasts about six months. She approaches her neighbor, Mr. Henderson, who has an unused field. They verbally agree that Emily can use Mr. Henderson's field for six months in exchange for a portion of her wool harvest at the end of the season.

  Explanation: This is a parol lease for land use. The agreement between Emily and Mr. Henderson for the rental of the field, including the duration and the form of payment (a share of the wool harvest), was made entirely through conversation and mutual understanding, without a written contract. As the term is less than a year, it functions as a legally recognized parol lease.