What primary characteristic defines a leasehold estate?

A leasehold estate is primarily characterized by its temporary nature of property rights. This type of estate allows the tenant to occupy and use the property for a specified period, as defined in the lease agreement. Unlike freehold estates, which represent ownership of the land and arise from owning the land in perpetuity, leasehold estates do not grant ownership rights; instead, they provide the right to use and occupy the property temporarily.

In a leasehold estate, the arrangement between the landlord (lessor) and the tenant (lessee) is governed by the lease contract. The tenant's rights are limited to the duration of the lease, after which those rights typically revert back to the landlord. This temporary aspect is a fundamental element that distinguishes leasehold estates from other property rights.

While ownership and rights of authority between landlords and tenants might vary based on specific agreements, these concepts are not defining characteristics of leasehold estates. Similarly, a mortgage agreement pertains to financing and ownership rather than the nature of leasehold rights. Therefore, focusing on the transitional aspect of rights within the context of leasehold estates clarifies why the temporary nature is the defining characteristic.