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Simple English definitions for legal terms
master lease
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A quick definition of master lease:
A master lease is a type of contract where the rightful owner of a property allows someone else to use and occupy it in exchange for payment, usually rent. This lease can control later leases or subleases of parts of the property. It is like renting a house, but the person renting it out has the power to rent it out to others as well.A more thorough explanation:
Definition: A master lease is a type of lease that controls later leases or subleases, particularly of parts of the leased property.
Example: A property owner leases a commercial building to a tenant for a long-term lease. The tenant then subleases a portion of the building to another business for a shorter-term lease. The original lease between the property owner and the tenant is the master lease, which controls the sublease between the tenant and the other business.
This example illustrates how a master lease can be used to control and regulate subleases of a property. The property owner can ensure that all subleases comply with the terms and conditions of the master lease, and that the property is being used in a way that is consistent with their intentions.