A lease creates both privity of estate and privity of contract between the lessee and the landlord.

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Privity of estate refers to the legal relationship that exists between parties whose estates constitute one estate in law, such as a landlord and lessee, involving rights and duties that run with the land. Privity of contract refers to the relationship that exists between parties to a contract, allowing them to sue each other but not a third party. In a lease, both privity of estate and privity of contract are created between the lessee and the landlord because they enter into a contractual agreement (privity of contract) that involves rights and obligations tied to the property itself (privity of estate).

A Lease Creates Both Privity of Estate and Privity of Contract