Difference Between Sale and Rent

Nowadays, the financial balance is very important. Both selling and renting affect personal financial condition.

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Business Quiz

Test your knowledge about topics related to business

1 / 10

A Company is called an artificial person because _________.

It does not have the shape of a natural person

It cannot be used in the court of law

It is invisible and intangible

It exists only in contemplation of law

2 / 10

The management of the company is entrusted to __________.

Promoters

Employees

Share holders

Board of Directors

3 / 10

Importing goods for the purpose of re-export is termed as ___________.

Entrepot trade

Import trade

Export trade

Wholesale trade

4 / 10

Economic activities are related to ___________.

Production of wealth

Satisfy ones urge

Undertaking social service

Social service

5 / 10

__________ scale firms enjoy economies of scale.

Complex

Medium

Large

Small

6 / 10

In business, stakeholders are defined as:

Only the people that purchase goods or services from a business.

Just the vendors that sells to the business.

All the people who stand to gain or lose by the policies and activities of a business.

Only the employees that are effected by the policies of a business.

7 / 10

When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.

private placing

bonus issue

rights issue

offer for sale

8 / 10

Business-to-consumer (B2C) is also known as

Wholesale business

Retail sales

Consumer sales

9 / 10

A firm which outsources its works requires ___________.

more employees

less employees

skilled employees

semi-skilled employees

10 / 10

In case of death or insolvency of a partner the firm is?

Dissolved

Carried on

New owner

None of the above

Your score is

Summary

Sale vs Rent

Sale is when you give up the possession of your property in exchange for money, and rent is when you lease your property in exchange for money on a monthly or yearly basis without giving up your ownership.

Sale is when you transfer the property you possess to someone else in exchange for money. This is a legal process, and after selling the property, you do not have any right over that piece of property.

Rent is when you lease your property to someone to use temporarily in exchange for money. The owner remains the same.

Comparison Table

Parameters of Comparison	Sale	Rent
Definition	A sale is when an owner sells the possession of his/her property forever in exchange for money.	A rent is when you rent or lease a property for a short time being.
Owner	Owner changes in a sale.	The owner does not change in rent.
Expense	Selling includes more money than renting.	Renting includes less money than selling.
Time	Selling is permanent. If you sell, you lose possession of that property forever.	Rent is temporal. Renting can be done for a few months or years.
Ownership	The seller loses the ownership and the buyer gets the ownership.	The owner does not lose the ownership and the buyer does not get the ownership.

What is Sale?

Sale is a legal process of shifting the ownership. A seller sells any kind of property in exchange for money, and the buyer buys it by providing that money.

Sale is a permanent settlement. When a person sells any kind of property, that person loses any kind of rights and privileges over that property.

The buyer and her/his descendants enjoy that property for eternity unless they sell it to someone else.

Any kind of property can be sold. House, land, artefacts, any commodity or object can be subjected to be sold.

After the sale, the sellers lose all the rights and liberties over the property. They can not call the property of theirs.

What is Rent?

Rent is leasing a property temporarily for the time being. Rent does not shift the ownership from the seller to the buyer.

The owner and buyer sign a lease agreement that states all their demands and the time period of the lease and also mentions the amount of money for renting that property. Once that agreement expires, the buyer loses his rights over it and can not use it further.

Renting a property, house, hall, products, or goods is possible. You can even rent a service. Renting is paying money to use someone else’s property.

Renting is good for the environment as a product or property gets used more efficiently, which is better than generating other similar products. Sustainability is important in today’s day and time.

Main Differences Between Sale and Rent

Selling is switching the ownership to the buyer. Whereas renting keeps the owner the same, the buyer takes a lease from the owner temporarily.
The seller loses all kinds of rights over the property after selling. But after giving the property on rent, he/she does not lose the rights. The property still belongs to them. By giving to rent the property, they just give it to the buyer to use temporarily.
The sale is for life long. You can not get it back unless the new owner sells it back to you. Rent is for a specific period of time, decided by seller and buyer.
Selling a property includes more money than renting. By selling a property, the owner gets a lot of money depending on the type of the property. To rent, one needs less money. Renting a property is not very expensive, but again, the amount of money depends on the type of the property.
After the sale, the buyers can get a loan against that property if they want, but after the rent, the buyer can not take a loan against that property as it does not belong to him/her.

References

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