In a lease agreement, who owns the asset and rents it out?

In a lease agreement, who owns the asset and rents it out?

• A. Lessor
• B. Lessee
• C. Owner
• D. Agent

Answer: (A)

In a lease, the person who owns the asset and rents it out to another is called the lessor. The one who pays to use the asset for a period is the lessee. Ownership stays with the lessor for the duration of the lease, unless there’s a separate purchase option that allows transfer of ownership. An agent, if involved, is just a facilitator who helps arrange the lease and does not own or rent the asset. For example, in a car lease, the bank or leasing company is the lessor, and you are the lessee using the car under the lease terms.

In a lease, the person who owns the asset and rents it out to another is called the lessor. The one who pays to use the asset for a period is the lessee. Ownership stays with the lessor for the duration of the lease, unless there’s a separate purchase option that allows transfer of ownership. An agent, if involved, is just a facilitator who helps arrange the lease and does not own or rent the asset. For example, in a car lease, the bank or leasing company is the lessor, and you are the lessee using the car under the lease terms.