Which term describes land ownership for a specific period as opposed to a freehold estate?

Leasehold estate refers to land ownership for a specific period, typically governed by a lease agreement between the property owner (lessor) and the tenant (lessee). In this arrangement, the tenant has the right to occupy and use the property for a set duration, which could range from a few months to many years, depending on the terms of the lease. This contrasts with a freehold estate, where ownership is perpetual and can last indefinitely.

A leasehold estate does not confer the same level of ownership rights as a freehold estate; rather, it grants temporary rights to use the property while the actual ownership remains with the lessor. This distinction is significant in real estate, as it affects the rights and responsibilities of both the landlord and tenant.

Understanding leasehold estates is critical, particularly in residential and commercial leasing contexts, where the duration and terms of occupation can impact investment strategies and legal obligations. This foundational concept of property rights is essential for anyone studying real estate fundamentals.