3.3 Leasehold Estates
Leasehold Estates
A leasehold estate arises when a property owner (lessor/landlord) executes a lease with a tenant (lessee). The tenant does not own the property (fee interest), but has the right to possess and use the premises for the lease term. For the tenant, a leasehold is considered personal property.
Leasehold tenants are entitled to possess and use the leased premises as described in the lease, but their rights to exclude others are limited.
- Estate for years: Leasehold for a definite period with a set start and end date. It ends automatically at the end of the term, no notice required. Example: a three-year lease.
- Estate from period-to-period (Periodic tenancy): Leasehold that automatically renews for set periods (like month-to-month), as long as rent is paid. Either party can terminate with proper notice.
- Estate at will: Tenancy with no definite expiration—continues as long as both parties agree and conditions are met. Ends with notice or death of either party.
- Estate at sufferance: Occurs when a tenant stays without the landlord’s consent after the lease ends (a “holdover” tenant).
Renting the Rights
Choose the best answer for each question, then select Check Answers.
Which type of leasehold estate automatically ends at a specified date, with no renewal or notice required?
An estate for years has a definite start and end date and ends automatically.
What is an “estate at sufferance”?
An estate at sufferance occurs when a tenant stays after the lease ends, without permission.
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