The form provided by a prospective lessor that, often combined with a credit application, is filled out and returned by the prospective lessee to provide the lessor with basic information about the lessee and the intended lease transaction is a lease application. Lease applications are generally used for retail lease transactions; larger transactions use a request for proposal. Depending on their respective market and funding sources, different lessors use different lease applications that are designed to meet their specific needs.
The lease application is usually signed only by the lessee and any co-lessees. Since it could be mistaken for a lease commitment, interested lessors generally do not sign lease applications. A lease application commonly states that it is merely a request by the lessee for a lease, that the lessee shall not take any action in reliance upon its submittal, that it has not yet been approved by the lessor, that there should be no assumption that the lessor will automatically approve the application, and that the lease transaction shall not be construed to have the lessor’s approval until all documentation has been signed by all parties.
| The Lease Underwriting Process |
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