What is the primary purpose of a lease agreement?

The primary purpose of a lease agreement is to outline the terms and conditions under which one party agrees to rent property from another party. This document serves as a legal contract that details the rights and responsibilities of both the lessor (the property owner) and the lessee (the tenant). Key components typically included in a lease agreement are the duration of the lease, rent amount, payment due dates, maintenance responsibilities, and provisions for terminating the lease. By clearly defining these aspects, a lease agreement helps to prevent misunderstandings and disputes between the parties involved, ensuring that both sides are aware of their obligations and expectations.

In contrast, establishing a public auction process, providing a warranty for the property, or setting the selling price of the property do not align with the purpose of a lease agreement, which focuses specifically on the rental arrangement between the involved parties.