What does 'leased' mean in real estate?

When someone leases a property, they give it to a tenant for use under a leasing agreement. This agreement sets the terms and conditions, including the duration, monthly payments, and tenant responsibilities.

One important point is that the tenant must take care of the property. They should avoid causing too much damage. This means not damaging it more than usual use would cause. If the property suffers such damage, the tenant could face additional charges.

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Tenants usually must follow the lease for the agreed time, but sometimes they may need to end the lease early. In these cases, early termination fees may apply. However, the agreement might allow the tenant to leave without penalty. This can happen if the tenant finds a new tenant or pays a set amount to break the contract.