Property OwnershipEstates

Leasehold Estate

A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.

Understanding Leasehold Estate

Leasehold estates are created through a lease agreement between a landlord (lessor) and a tenant (lessee). The tenant has the right to exclusive possession of the property for the term of the lease, but does not own the property. At the end of the lease term, the right of possession reverts back to the landlord.

Real-World Example

Renting an apartment is a leasehold estate. You have the right to live in the apartment for the duration of your lease agreement, but you do not own the apartment.

Exam Tips

Think of 'lease' as a rental agreement. Focus on the defined term and the lack of ownership.

Related Terms

LeaseLandlordTenantTermEstate for YearsPeriodic Tenancy

Practice Questions

Related Concepts

A freehold estate represents ownership of real property with an indefinite duration.

A life estate is a freehold estate that grants ownership rights for the duration of someone's life.

The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.

Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.

A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.

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