What is meant by the term leasehold estate?

The term leasehold estate refers to the tenant's right to use and occupy a property for a specified period, as permitted by the lease agreement. This concept signifies not ownership of the property itself, but rather a legal interest in the property that grants the tenant rights to utilize it according to the terms outlined in the lease.

A leasehold estate typically involves various rights and obligations, including the right to inhabit the property, maintain it, and make specified alterations, all in exchange for rental payments to the landlord or property owner. The duration of this right is defined by the lease contract, which specifies when the tenant can occupy the space and the terms of that occupancy. Thus, the essence of a leasehold estate is about the privileges granted to the tenant rather than ownership of the property, making option B the correct choice.

Understanding leasehold estates is important as it helps clarify the nature of tenant-landlord relationships and the legal framework governing these arrangements.