What type of estate does a leasehold represent?

A leasehold represents a nonfreehold interest in property. This is distinct from a freehold estate, which conveys ownership of the property and includes rights such as selling or transferring the property. In contrast, a leasehold is a temporary right to occupy and use the property without transferring ownership, as the tenant (lessee) holds possession only for a specified term defined in the lease agreement.

Understanding that leaseholds are nonfreehold interests is pivotal, as it reflects the nature of the tenancy agreement, where the landlord (lessor) retains significant rights over the property. The tenant's rights are limited to those expressly granted in the lease, usually involving the payment of rent in exchange for possession and use of the property during the lease term.

While life estates, freehold estates, and fixture estates reflect different forms of property interests or rights, leasehold interests specifically focus on the arrangement where one party occupies and uses property owned by another party without gaining ownership. This specific characteristic of leaseholds underscores their classification as nonfreehold interests.