Which statement best defines renewal or extension of a lease?

• A. The continuation of a lease agreement beyond the original term, including a new lease where the lessee continues to use the same property.
• B. The assignment of lease to another party
• C. The termination of a lease before its term with a penalty
• D. The sale of leased property with a leaseback

Answer: (A)

Renewal or extension is about keeping the same tenant in the same space beyond the original lease term. It means the tenancy continues past its end, either by extending the existing agreement or entering a new lease for continued use of the same property. This is distinct from transferring rights to someone else (assignment), ending the lease early (termination with penalties), or selling the property and leasing it back (sale-leaseback), none of which involve simply extending the term of occupancy.