An essential element in a lease agreement is that the
A) lessee transfers less than the total interest in the property.
B) lessor transfers less than the total interest in the property.
C) lease must contain a bargain purchase option.
D) rental (lease) payments must be constant for the duration of the lease.

Question

Quizplus · Accepted Answer

The essential element in a lease agreement is that the lessor (the property owner) transfers less than the total interest in the property to the lessee (the tenant). This means the lessee gets the right to use the property for a specified period under certain conditions, but does not gain ownership of the property.

An Essential Element in a Lease Agreement Is That the