> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Lease Agreement for Liability

> Provide the lease agreement underlying a lease-payment liability to verify terms, balance, and payoff conditions.

## What this task is

This task collects the **lease agreement** associated with a **lease-payment liability** reported on the borrower’s credit profile.
Unlike a property lease for rental income, this relates to **lease obligations that function as debt**, such as:

* **Vehicle leases**, or
* Other **equipment or personal property leases**.

The agreement should specify:

* The **monthly payment amount**,
* The **remaining term**, and
* Any **early termination or payoff provisions**.

## When this task is required

This task is required when:

* A liability is categorized as a **Lease Payment**, and
* The loan is being underwritten to either:
  * **Include the liability in [DTI](/entity-models/key-concepts/dti)**, or
  * Consider it for **payoff or exclusion** (for example, if being paid off at or before closing).

It is especially important when:

* The lease is to be **paid off or bought out**, or
* There is a question about the **remaining term or residual obligations**.

## Why this task is required

Lease agreements can be structured in many ways, and their **true economic impact** is not always obvious from a credit report.
The agreement helps the underwriter:

* Confirm the **correct monthly payment** and **remaining duration**.
* Determine whether there is a **residual or balloon obligation** at lease end.
* Assess the **impact of paying off or terminating the lease** in connection with the new mortgage.

Without the agreement, the lender may:

* Make **incorrect assumptions about the payment or term**, or
* Be unable to verify that a proposed **payoff or exclusion** meets program rules.

## Documents needed to resolve this task

To satisfy this task, provide:

* The **complete, signed lease agreement** underlying the liability:
  * All pages, **unredacted**, including any **addenda** that modify payment, term, or end-of-lease options.
  * Clear indication of **payment schedule, remaining term, and any residual value or purchase option**.
* If the lease is being **paid off or bought out**, also provide:
  * Any **payoff quotes or buyout offers** from the lessor, along with **proof of payment** once completed.

These documents allow the underwriter to appropriately treat the lease in **[DTI](/entity-models/key-concepts/dti) calculations and payoff analysis**.