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Penny Smith, a North Carolina real estate broker, discusses the importance of understanding a lease before signing it. A lease is a legally binding agreement between the tenant and landlord, outlining obligations and restrictions for both parties. She emphasizes the necessity of reading the lease carefully, as all leases are negotiable. If there are unclear terms or anything unsatisfactory, tenants should question or renegotiate. Smith advises potential renters to be proactive and informed prior to signing a lease.