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

Who is referred to as the lessee in a lease agreement?

1. The landlord of a property

2. The tenant of a property

3. The person offering the property for lease

4. The real estate agent facilitating the lease

The correct answer is: The tenant of a property

In a lease agreement, the lessee is the individual or entity that is renting or leasing the property from another party. This term specifically refers to the tenant who has the right to use and occupy the space in exchange for payment. The lessee is responsible for adhering to the terms of the lease, including making timely rent payments and maintaining the property as agreed upon. Understanding this role is essential, as the lessee holds rights and obligations under the lease agreement that protect both the tenant and the landlord. In contrast, the landlord is referred to as the lessor and is the party that owns the property being leased. The person offering the property for lease is also typically considered the landlord or lessor, while a real estate agent simply facilitates the process but does not have ownership or leasing rights. Therefore, recognizing that the lessee is specifically the tenant helps clarify the responsibilities and rights associated with lease agreements.