In real estate, what does the term "leasehold" mean?

The term "leasehold" in real estate refers to an arrangement where a tenant holds the rights to occupy and use property owned by another party (the landlord) for a specified period under certain conditions. This arrangement is formalized through a legal document, typically a lease agreement, which outlines the terms of the tenant's use of the property, duration of occupancy, and other obligations of both the landlord and tenant.

This concept captures the essence of leasehold as it emphasizes the temporary nature of the arrangement and the legal basis upon which the tenant operates. The lease document serves to grant these temporary rights, distinguishing leaseholds from fee simple ownership, where the owner possesses full rights to the land and property indefinitely.

In contrast to the other choices, the other options do not accurately encompass the full scope of what leasehold means. The first option might suggest a time frame but lacks the comprehensive legal framework involved. The second option inaccurately describes leasehold as a form of ownership that includes land, which relates more to freehold ownership. Lastly, while defining property size and boundaries is essential in real estate, it does not pertain to the definition or implications of leasehold itself. Thus, recognizing that a leasehold involves a legal document that grants temporary rights to