Lease bonds are financial instruments used in real estate transactions where a bond is issued by a tenant to a landlord as a form of security deposit for a lease agreement. This bond serves as a guarantee that the tenant will fulfill their obligations under the lease, such as paying rent on time and maintaining the property in good condition. In the event that the tenant breaches the terms of the lease, the landlord can make a claim against the bond to cover any losses or damages incurred. Lease bonds provide a level of protection for landlords and help ensure that tenants adhere to the terms of their lease agreements.