What type of interest does a lessee hold?

The lessee holds a leasehold estate, which represents their right to use and occupy the property for a specified period of time according to the terms of the lease agreement. This type of interest grants the lessee the ability to benefit from the property, such as living in or operating a business on it, but does not confer ownership of the property itself. The leasehold estate is a temporary interest that is subordinate to the fee simple interest of the lessor, who owns the property.

This distinction is crucial because it outlines the nature of the lessee's rights compared to the ownership rights held by the lessor. A lessee's rights and duration of possession are specified in the lease contract, and once that lease expires, the interest reverts back to the lessor. Understanding this fundamental aspect of real estate is essential for anyone involved in property leasing or appraisal, as it affects valuation and market analysis.

The other options refer to different concepts in real estate. A leased fee is the lessor's interest in the property, which includes the right to receive rent and the future possession of the property after the lease expires. Lease value relates to the economic value of the leasehold compared to ownership, and "sandwich" typically refers to a