What defines a leasehold estate?

A leasehold estate is primarily defined by a tenant's rights to occupy a property according to the terms specified in a lease agreement. This arrangement does not grant ownership of the property itself but provides the tenant with the right to use and enjoy the property for a specified duration, as established in the lease.

In this context, the lease outlines the responsibilities, rights, and limitations for both the landlord and the tenant, which confirms the tenant's legal right to occupy the premises. This structure is a fundamental aspect of real estate transactions and rental agreements, distinguishing leasehold estates from other types of property interests, such as ownership estates.

The other choices do not accurately capture the essence of a leasehold estate. For instance, defining it as an estate of ownership suggests full property rights, which contradicts the nature of a leasehold where ownership remains with the landlord. Describing it as a perpetual interest misrepresents a leasehold's temporary nature, as lease agreements are finite and typically renewable but not perpetual. Lastly, the choice concerning an estate granted to a third party through inheritance refers to a different concept related to property transfer and does not relate to the tenant's occupancy rights established in a lease.