North Dakota Real Estate Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

A leasehold estate refers specifically to an interest in real property that is established under the terms of a lease agreement for a predetermined period of time. In this arrangement, the tenant (or lessee) is granted the right to use and occupy the property owned by another (the landlord or lessor) for the duration specified in the lease.

This type of estate does not confer ownership of the property itself; instead, it creates a temporary right to use the property, typically in exchange for regular payments, such as rent. The leasehold estate will eventually terminate when the lease term expires unless renewed or extended by mutual agreement.

Understanding leasehold estates is important in real estate as they differ significantly from freehold estates, which denote an ownership interest that carries no time limitations. Additionally, this concept is distinct from joint ownership or legal rights to use a property, as those terms encompass different legal arrangements and definitions in real estate law.