Explain what a leasehold estate is.

A leasehold estate represents a specific type of interest in real property that provides the tenant with possession and use of the property for a defined period, as stipulated in a lease agreement. This concept is essential in property law, distinguishing the rights of the tenant from those of the landlord or property owner.

In a leasehold estate, the tenant does not own the property; instead, they have the right to occupy it and utilize it according to the terms of the lease. The duration of this interest is generally for a finite term, which could range from a few months to several years, depending on the lease terms. This temporary arrangement allows individuals or businesses to use property without incurring the responsibilities and risks associated with ownership, such as maintenance and property taxes.

Understanding leasehold estates is vital for recognizing the rights and obligations inherent in rental agreements and the nature of property possession. Other options refer either to ownership structures, financing methods, or specific usage scenarios that do not correctly capture the essence of a leasehold estate.