Which clause in a lease defines how the tenant can and cannot use the space?

Prepare for the New York Real Estate Salesperson Test with interactive multiple choice questions and detailed explanations on each topic. Study effectively and pass your exam with confidence!

The use clause in a lease is specifically designed to outline the permitted and prohibited activities that a tenant can engage in while utilizing the rented space. This clause is crucial because it establishes the type of business or activity that the tenant may conduct, ensuring that it aligns with the property’s zoning laws and the landlord’s expectations. Additionally, it serves to protect the landlord’s interests by preventing tenants from engaging in activities that could damage the property or disrupt neighboring tenants.

For instance, if a commercial space is leased for retail purposes, the use clause may stipulate that the space cannot be used for manufacturing. This helps maintain the intended character of the property and ensures compliance with local regulations. By defining the acceptable purposes of the leased premises, the use clause not only facilitates clear communication between the landlord and tenant but also helps prevent disputes related to the property’s use during the lease term.

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