What sets a master lease apart from other types of leases?

A master lease is characterized by its function as a foundational agreement that establishes a framework for multiple specific leases rather than merely being a stand-alone lease for a single property. This distinctive feature allows it to cover various units or properties under one overarching agreement, granting the lessee the right to lease out the individual units while still adhering to the terms laid out in the master lease.

This type of lease is especially common in commercial real estate and large residential complexes, where a property owner may lease out an entire building to an operator, who then manages and rents out the individual units. Thus, the master lease creates an efficient process for managing multiple leases within the parameters set forth in the master agreement, facilitating oversight and administration.

The other choices do not accurately describe the nature of a master lease. For instance, not all master leases apply exclusively to residential properties; they are quite versatile and can also pertain to commercial spaces. Additionally, the requirement of periodic renewal is not a standard feature of master leases, as the terms can vary widely. Lastly, while a master lease can provide certain rights regarding subleasing, it does not inherently allow subleasing without restrictions, as the original lease agreement will typically outline specific conditions regarding this aspect.