Criteria to be deem as financial lease

Dear all,

I am reading Schweser Notes on non-current liabilities- operating vs financial lease.

I have troubles understanding the following statement:

  • Title to the leased asset is transferred to the lessee at the end of the lease

What do you mean by the above? What is title?

Can someone explains?

Thanks a lot!

Cheers,

Ernest

Pompey has it correct: title means legal ownership.