Ace the New York Real Estate Game 2026 – Level Up with NYREI Practice Exam Fun!

A lease temporarily transfers the rights of property from the lessor to the lessee. In this arrangement, the lessor, who is typically the owner of the property, grants the lessee the right to use and occupy the property for a specified period in exchange for rent. This transfer of rights is essential to the functioning of a lease, whereby the lessee gains possession and usage of the property without obtaining ownership.

Understanding this concept is crucial in real estate, as it delineates the roles and responsibilities of each party involved in the leasing process. The lessor retains ownership and therefore holds onto certain rights, such as the ability to set the terms of the lease and to regain possession at its termination, while the lessee acquires the right to use the property, subject to the conditions outlined in the lease agreement. This temporary nature of the rights is what differentiates a lease from a sale, where ownership is permanently transferred from seller to buyer.