Property Ownership

In Illinois, a 'leasehold estate' is best described as:

AOwnership of land and buildings in perpetuity
BA tenant's right to possess and use property for a fixed term under a lease agreement✓ Correct
CA type of easement for agricultural use
DPartial ownership of a condominium building

Explanation

A leasehold estate is a less-than-freehold interest in property created by a lease agreement. The tenant (lessee) has the right to exclusive possession and use of the property for the lease term, subject to the landlord's (lessor's) superior freehold interest. Types of leasehold estates include: estate for years (fixed term), estate from period to period (month-to-month), estate at will, and estate at sufferance. Leasehold interests can be mortgaged (leasehold financing) and sometimes insured with title insurance.

Related Illinois Property Ownership Questions

Practice More Illinois Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Illinois Quiz →