Leasehold estate
National Real Estate Exam glossary · Leasing/Management
Definition
A tenant's possessory interest in real property for a limited term, conveyed by a lease. The principal forms are the estate for years (a fixed term), the periodic estate (renewing automatically, as month-to-month), the estate at will, and the estate at sufferance. The tenant holds possession; the landlord retains ownership.
Leasehold estate in plain English
A leasehold estate is the bundle of rights a TENANT gets to live in or use a property for a set stretch of time — you get to possess and use the place, but you don't own it; the landlord keeps ownership. It comes in a few flavors: a fixed term with a clear end date (estate for years), one that auto-renews like month-to-month (periodic estate), an open-ended arrangement either side can end anytime (estate at will), and the awkward case where a tenant overstays after their right has ended (estate at sufferance). Think of renting an apartment: for as long as your lease runs, the space is yours to use — but the building still belongs to the landlord, and how the lease is set up decides when your time there ends.
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