Washington State Real Estate Practice Exam

A leasehold estate refers to a property interest that is held for a specific period of time as outlined in a lease agreement between the landlord (lessor) and the tenant (lessee). This type of estate does not grant ownership of the property; instead, it provides the tenant with the right to use and occupy the property for the duration specified in the lease.

The key characteristic of a leasehold estate is its temporary nature, which contrasts with freehold estates that generally represent ownership in perpetuity. In a leasehold situation, when the lease term ends, the rights to the property revert back to the landlord, and the tenant must vacate the premises unless a renewal agreement is made. This understanding is critical for both landlords and tenants to navigate their rights and obligations in real estate transactions.