What type of property interest allows a tenant to occupy a property they do not own?

A leasehold estate is the correct term for the type of property interest that allows a tenant to occupy a property they do not own. In a leasehold estate, a landlord grants a tenant the right to use and occupy the property for a specified period of time in exchange for rent. This arrangement does not transfer ownership of the property; rather, it creates a temporary right to possess and use the property as outlined in the lease agreement.

This type of interest is fundamental to landlord-tenant relationships, as it establishes the terms of occupancy, including duration and rent amount, as well as the responsibilities of both parties. Each leasehold estate can vary significantly based on the terms negotiated by the landlord and tenant.

The other options represent different kinds of property interests. A freehold estate denotes ownership of the property for an indefinite duration, while title interest refers more broadly to the legal ownership of property, which includes both freehold and other interests. Possessory interest generally pertains to the current right to possess property, which can overlap with leasehold but is a broader term. Thus, leasehold estate is the precise term that captures the tenant’s right to occupy property they do not own.