What is the significance of a lease agreement?

A lease agreement is a crucial legal document that establishes the framework for the rental relationship between a landlord and a tenant. It outlines the terms under which a tenant may occupy a property, making it an essential tool for both parties. This document typically includes details such as the duration of the lease, rental amount, payment schedule, maintenance responsibilities, and the rights and obligations of both the landlord and tenant.

By clearly specifying the conditions under which a tenant can use the property, the lease helps to prevent misunderstandings and disputes. This includes important clauses addressing issues such as security deposits, rules regarding pets, and penalties for late rent. Therefore, option C correctly captures the significance of a lease agreement as it ensures that both parties are aware of their rights and responsibilities, thereby fostering a more stable rental relationship.

The other choices do not fully encompass the purpose and significance of a lease agreement. For instance, focusing solely on the landlord's rights or the tenant's obligations ignores the mutual obligations and protections inherent in the contract. Similarly, defining the property's market value is not a function of a lease agreement; rather, it pertains to property appraisal and valuation.