Define "leasehold estate."

A leasehold estate is a type of property interest that grants an individual or entity the right to occupy and use a piece of land or property for a specified duration, according to the terms outlined in a lease agreement. This arrangement typically involves the lessee (tenant) paying rent to the lessor (landlord) in exchange for the right to use the property.

The key characteristic of a leasehold estate is its temporal nature; it does not confer ownership of the property, but rather a temporary right of occupancy and use. The specific duration of this right is defined in the lease, which can range from short-term agreements to long-term leases lasting several years or more.

In contrast, permanent ownership interests in real estate refer to freehold estates, which grant full ownership rights in perpetuity. A type of real estate investment trust, which is a business structure for investment purposes, does not encompass the concept of leasehold estates. Additionally, a legal claim against a property refers to a lien or encumbrance, which is distinct from the rights granted under a leasehold estate. Understanding these distinctions helps clarify the nature and implications of leasehold interests in real estate transactions.