Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Who acquires the right to possession and use of goods under a lease?

1. Agent

2. Lessor

3. Lessee

4. Sublessor

The correct answer is: Lessee

The lessee acquires the right to possession and use of goods under a lease. In a leasing arrangement, the lessor is the owner of the goods and grants the lessee the right to utilize them for a specified period in exchange for rental payments. This allows the lessee to have the benefit of using the goods without having to purchase them outright. The lessee's rights typically include possessing the leased goods and using them as outlined in the lease agreement. This arrangement gives the lessee flexibility and access to the goods needed for personal use or business operations while maintaining a contractual obligation to return them in a specified condition at the end of the lease term. In contrast, while an agent might facilitate the leasing process, they do not have rights to possession or use of the goods. A sublessor would be someone who leases the goods from the original lessee to lease them out again, but they do not initially acquire rights to possess the goods themselves.