A private lease of land is a contract between the owner of property and another person, where the owner (the lessor or landlord) agrees to give the other person (the lessee or tenant) possession and use of the land for an agreed period of time. The essential characteristic of a lease is that it gives the lessee exclusive possession of the land, but during the lease the owner retains legal ownership. Usually the lessee pays a sum of money (the rent) in return for possession and use of the land.
To work out whether an owner of land is selling the land or merely agreeing to a lease, it is important to consider the language used in the agreement, as this language will likely indicate the parties' intentions. For instance, a court would consider whether words like 'lease' or 'rent' were used.
Different kinds of lease are distinguished. Click on the list below for explanations.