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Simple English definitions for legal terms
graduated lease
Read a random definition: substituted agreement
A quick definition of graduated lease:
A lease is a contract where someone who owns property lets someone else use it in exchange for money. The lease can be for a short or long time, and the person using the property usually has to pay for things like taxes and maintenance. There are different types of leases, like ones for businesses or for mining. When someone leases property, they don't own it, but they have the right to use it for a certain amount of time.A more thorough explanation:
A graduated lease is a type of lease agreement where the rent amount increases over time based on certain conditions, such as operating expenses or gross income. For example, a commercial property lease may have a graduated rent structure where the rent increases as the tenant's business grows and generates more revenue.
Another example of a graduated lease is a residential lease where the rent increases annually by a fixed percentage. This type of lease is common in rent-controlled areas where landlords are limited in how much they can increase rent each year.
Overall, a graduated lease allows for flexibility in rent payments and can benefit both the landlord and tenant. The landlord can adjust the rent to reflect changes in the property's value or the tenant's ability to pay, while the tenant can plan for future rent increases and budget accordingly.