Certified Residential Appraiser Practice Exam

In the context of a leasehold estate, who is referred to as the lessor?

1. The tenant

2. The owner of the property

3. The landlord's agent

4. The financial backer

The correct answer is: The owner of the property

In the context of a leasehold estate, the term "lessor" refers to the owner of the property who grants the rights to use the property to another party, typically referred to as the lessee or tenant. The lessor retains ownership and rights to the property while allowing the tenant to occupy and utilize it under the terms specified in the lease agreement. Understanding this role is crucial because the lessor is responsible for maintaining the property and ensuring that it meets any legal requirements during the lease term, while the tenant is obligated to adhere to the terms of the lease. This distinction is fundamental to property law and leasing agreements, as it clarifies the relationship between the parties involved. The other terms mentioned in the options represent different roles or entities that do not accurately capture the definition of lessor. The tenant is the individual or entity that pays rent for the use of the property but does not own it. The landlord's agent could refer to a property manager or a representative acting on behalf of the lessor but is not the owner themselves. The financial backer might refer to an investor or person providing funds related to the property but is also not involved in the direct leasing process as defined by the lessor-tenant relationship.