What defines a leasehold estate?

A leasehold estate is defined as a tenant's rights to occupy property according to a lease agreement between the landlord (lessor) and the tenant (lessee). This type of estate does not confer ownership of the property but instead provides the tenant with the legal right to use and occupy the property for a specified period under the terms outlined in the lease. The tenant's rights and obligations are clearly stipulated in the lease agreement, which might include payment terms, duration of occupancy, maintenance responsibilities, and any specific rules pertaining to the use of the property.

In leasehold estates, the landlord retains ownership of the property, while the tenant acquires the right to occupy and use the space. This arrangement can be for a short term—such as month-to-month leases—or long term, like one-year leases or longer, as defined by the lease itself. Leasehold estates are fundamental concepts in real estate, emphasizing the distinction between ownership and the right to use property.