Which statement best describes a leasehold interest?

• A. A tenant's right to occupy land for a defined term under a lease.
• B. A right to use land indefinitely.
• C. An ownership interest in land.
• D. A right to use land for a roadway.

Answer: (A)

A leasehold is the tenant’s right to occupy land for a defined term under a lease. The key idea is exclusive possession for a specified period, with the landlord retaining ownership and the land reverting to the landlord at the end of the term. This distinguishes it from ownership (where you hold a freehold) and from indefinite use (which would be a license or another non-ownership right). A right to use land indefinitely isn’t a lease for a term, and a right to use land for a roadway describes an easement or right of way, not a leasehold. So the description that captures a tenant’s right to occupy for a defined term under a lease is the correct one.