In real estate, what does the term 'leasehold' refer to?

The term 'leasehold' specifically refers to an interest in property that is held under a lease agreement. This type of interest allows a tenant to occupy and use the property for a specified period while paying rent to the landlord, who retains full ownership of the property. Leaseholds are common in various settings, such as residential rentals, commercial leases, and ground leases, highlighting a relationship where the lessee has rights to the property based on the lease terms, but does not hold title to the property itself.

This distinction is crucial in real estate because leaseholders have certain rights and responsibilities defined in their lease agreements, which can include duration of the lease, renewal options, and obligations for maintenance or property improvements. In contrast, ownership with full title rights implies complete control and ownership over the property, which is not characteristic of a leasehold interest. Thus, understanding the concept of leasehold is fundamental for anyone involved in real estate transactions and property management.