What defines a leasehold estate?

A leasehold estate is characterized by the possession of property for a limited time, typically governed by a lease agreement between a landlord and a tenant. This type of estate grants the tenant the right to occupy and use the property, but it does not confer ownership of the property itself. The duration of the lease can vary, commonly ranging from a few months to several years, and once the lease term expires, the tenant is expected to vacate the property unless the lease is renewed or extended.

In contrast to leasehold estates, permanent ownership of property, as mentioned in one of the choices, refers to fee simple or freehold estates, where the owner has complete control and ownership rights. Equal ownership interests pertain to joint ownership arrangements, such as tenants in common or joint tenancy, which involve shared ownership but do not relate to leasehold rights. Lastly, a trust held for real estate involves a legal arrangement where property is managed by a trustee for the benefit of another party, which is a distinct concept from the leasehold structure.