C – Compendium of Real Estate Terms & Concepts

A lease is basically a contract, between the lessor and the lessee. The lessor is the person, who gives out the said property or asset for rent, and lessee the one who takes the asset on rent. Sometimes the lessee is also termed the 'tenant' of the asset.

Capital expenditure is defined as an improvement or betterment to a property that extends its useful life. All building systems have a useful life and will need to be replaced at some point in time. Some examples are: