Which statement about leasehold interests is true?

Which statement about leasehold interests is true?

• A. A leasehold interest is a finite term interest in land.
• B. A leasehold is a freehold estate.
• C. A leasehold has no term limit.
• D. A leasehold gives ownership of the land.

Answer: (A)

Leasehold interests are a non-freehold form of property right that lasts for a defined period. The tenant has the right to use and occupy the land only for the term specified in the lease, with an end date when the lease expires (unless renewal is agreed). This finite duration is what distinguishes leasehold from ownership. Therefore, the true statement is that a leasehold is a finite term interest in land. It’s not a freehold estate, it does not grant ownership of the land, and it does have a term limit defined by the lease.

Leasehold interests are a non-freehold form of property right that lasts for a defined period. The tenant has the right to use and occupy the land only for the term specified in the lease, with an end date when the lease expires (unless renewal is agreed). This finite duration is what distinguishes leasehold from ownership. Therefore, the true statement is that a leasehold is a finite term interest in land. It’s not a freehold estate, it does not grant ownership of the land, and it does have a term limit defined by the lease.