Future Business Leaders of America (FBLA) Business Law Practice Exam

In a lease agreement, who is known as the lessor?

1. The landlord of the property

2. The tenant occupying the property

3. The property management company

4. The legal advisor

The correct answer is: The landlord of the property

In a lease agreement, the lessor is identified as the landlord of the property. The lessor is the entity that owns the property and grants the tenant, also known as the lessee, the right to occupy or use the property for a specified period and under certain conditions established in the lease. This role is crucial as the lessor retains ownership rights, sets the terms of the lease, and is responsible for maintaining the property. The other roles mentioned in the options have specific functions that do not align with the definition of a lessor. The tenant occupies the property, but does not have ownership rights over it. The property management company may manage the property on behalf of the lessor but is not the owner itself. The legal advisor provides legal counsel but does not have any ownership or managerial responsibilities regarding the property. Therefore, the lessor is distinctly defined as the landlord, reinforcing their primary role in the lease agreement.