Contracts

A lease agreement is a contract between a landlord and tenant that creates a:

AFee simple estate in the tenant
BLeasehold estate giving the tenant the right to possess the property for a term✓ Correct
CLife estate in the tenant
DTenancy in common with the landlord

Explanation

A lease creates a leasehold estate — a contractual right for the tenant to possess and use the property for the lease term. The landlord retains ownership (the fee interest).

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