Illinois Leasing Agent Practice Exam

What type of lease is a contract made between a lessor and a lessee?

1. Commercial lease

2. Residential lease

3. Month-to-month lease

4. Standard lease

The correct answer is: Residential lease

A lease is fundamentally a contract between a lessor (landlord) and a lessee (tenant), outlining the terms under which the lessee occupies and utilizes the lessor’s property. In this context, the term "residential lease" specifically refers to agreements structured for residential properties where individuals reside, making it the most appropriate choice in the context of the provided question. Residential leases typically involve more consumer protection and specific regulations that govern landlord-tenant relationships, ensuring that both parties adhere to local housing laws. This distinction is crucial as it not only governs the type of property but also dictates the legal framework surrounding the leasing process, tenant rights, and responsibilities. While commercial leases, month-to-month leases, and standard leases might also serve as contracts between lessors and lessees, they do not specifically categorize the nature of the lease in relation to residential living. Commercial leases pertain to business-related properties, month-to-month leases describe a leasing duration rather than a specific type, and standard leases can often lack the specificity needed to encompass residential regulations. Therefore, the term "residential lease" best encompasses the specific relationship and legal considerations pertinent to individuals renting a property to live in.