What occurs when a landlord and tenant agree to a lease for a specific term?

When a landlord and tenant agree to a lease for a specific term, it establishes a leasehold estate. This type of arrangement means that the tenant has the right to occupy and use the property for a designated period as specified in the lease agreement. The specific term indicates the length of time the agreement is in effect, such as a year, six months, or any other agreed-upon duration.

A leasehold estate is characterized by the legal rights of tenancy and the obligation for rent payment for the duration of the lease. This ensures that both parties understand their rights and responsibilities throughout the lease term. The term “leasehold estate” is crucial here, as it defines the tenant's interest in the property, highlighting the temporary and conditional nature of their occupancy compared to ownership.

The other choices, while related to property and tenancy in some way, do not specifically reflect the condition of having a fixed-term lease. Tenancy from period to period refers to leases that automatically renew after each period without a specified end date, a life estate pertains to property rights that last for the duration of an individual's life, and a rent agreement is a more generic term that can refer to various types of rental arrangements without indicating specifics about the lease term.