What is the primary purpose of a lease agreement in real estate?

The primary purpose of a lease agreement in real estate is to grant temporary possession of property. A lease agreement outlines the terms under which a tenant can occupy and use a property owned by another party, typically the landlord. This legal contract stipulates the duration of the tenancy, the rental amount, and the responsibilities of both the tenant and landlord.

By establishing the conditions of tenure, a lease protects the rights of both parties involved. For the tenant, it secures a place to live, work, or conduct business for the specified period, while for the landlord, it ensures that they receive rent payments and have a structured way to enforce property rules.

In contrast, transferring ownership is not the purpose of a lease, as ownership rights are retained by the landlord throughout the lease term. Financial security may be a result of a lease for both parties but is not its primary focus. Similarly, while there may be tax benefits associated with real estate transactions, providing such benefits is not a function of the lease agreement itself. Thus, the correct answer highlights the essence of what a lease arrangement facilitates in real estate transactions.