Which of the following applies to a leasehold estate?

A leasehold estate represents a temporary interest in real estate, distinguishing it from ownership interests such as freehold estates. In a leasehold estate, a tenant is granted the right to occupy and use a property for a specified period under the terms of a lease agreement, but they do not own the property itself. This arrangement is governed by the lease's terms, which outline the duration, limitations, and obligations of both the landlord and tenant.

In contrast to ownership, where the property owner holds title and has the authority to modify or improve the property, a leasehold estate typically restricts the tenant's rights concerning substantial improvements unless stated otherwise in the lease. While tenants may make minor repairs or alterations, any major changes usually require the landlord's consent. Moreover, leasehold estates do not automatically include rights like guaranteed renewals, which must be explicitly included in the lease terms.

Understanding the nature of a leasehold estate is crucial for recognizing the rights and limitations it imposes on tenants and landlords, thereby influencing various real estate transactions and property management practices.