A lease is a contract between an Owner of Real Estate (the lessor) and a Tenant (the lessee). It is a contract to transfer the lessor’s rights to exclusive possession and use of the property to the Tenant for a specified period. The lease establishes the length of time the contract is to run and the amount the lessee is to pay for use of the property. Other rights and obligations of the parties may be set forth as well.
In effect, the lease agreement combines 2 contracts:
The lessor grants the lessee the right to occupy the Real Estate and use it for purposes stated in the lease. In return, the Landlord receives payment for use of the premises and retains a reversionary right to possession after the lease term expires. The lessor’s interest is called a leased fee estate plus reversionary right.
 The statute of frauds in Illinois requires that lease agreements be in writing to be enforceable in court if they are for more than one year. Written leases should be signed by both lessor and lessee.
ORAL LEASES OF LESS THAN ONE YEAR IN DURATION ARE ENFORCEABLE IN COURT. THIS IS THE ONLY EXCEPTION OF THE RULE THAT ALL REAL ESTATE CONTRACTS IN ILLINOIS MUST BE IN WRITING TO BE ENFORCEABLE IN COURT.
