What is meant by a leasehold estate in property law?

A leasehold estate refers to a property interest that is created when a tenant rents or leases a property from a landlord for a specific duration under a formal lease agreement. This arrangement establishes the tenant's rights to occupy and use the property, but it is limited in time—meaning the tenant does not own the property outright. Instead, they hold the right to use and enjoy the property as stipulated in the lease during the agreed-upon period.

Leasehold estates can be temporary and are defined by their duration, such as month-to-month leases, annual leases, or leases with specific start and end dates. Once the lease term ends, the rights of the tenant to the property cease, and they must vacate the premises unless the lease is renewed or extended.

The other answer choices address different property concepts that do not align with the definition of a leasehold estate. For instance, a property interest held indefinitely refers to a fee simple estate, while a property interest acquired through adverse possession involves gaining title to property after continuous and open use without permission from the owner. Additionally, obtaining a property interest through a warranty deed refers to acquiring ownership of property with certain guarantees from the seller, which is also distinct from the temporary nature of leasehold estates.