Legal Question in Real Estate Law in California

Re: Corporation as Lessee

Well, most logically the lessee should be the corporation, but circumstances differ, and there is no overpowering legal reason why it couldn't be the president instead. It's basically an issue of which is assuming the responsibility for the rent payments and, to some extent, which made the arrangements with the employee and which benefits from providing the employee with the property. Normally, that all points to the corporation.

The arrangements should be approved by the corporation either by board resolution or by an officer who already has the necessary authority to execute the lease on behalf of the corporation and to make this fringe benefit available to the employee.

Further, the landlord is entitled to know who the actual occupant will be, and I would recommend that the lease explicitly state that XYZ Corporation or Mr. X (the president) is leasing the property for the occupancy and use of Mr. Y, the employee. This will prevent disputes later on as to who can actually use the property.