A property arrangement grants temporary rights to an individual or entity to occupy land or premises, distinguished by a defined duration. This form of possession is established through a lease agreement, stipulating the terms of occupancy, rent obligations, and responsibilities of both the lessor and lessee. An example includes renting an apartment, where the tenant gains the right to reside there for a specific term outlined in the lease.
This structure enables individuals or organizations to utilize properties without the substantial financial investment required for outright ownership. It provides flexibility, allowing occupants to adjust their housing or business arrangements as needed without the long-term commitments associated with freehold property. Historically, this system facilitated land management and resource allocation, enabling landowners to generate income while permitting others to access and utilize their properties for various purposes.
