A leasehold interest representing the right to possess real property for a definite and certain period. This type of estate is characterized by a fixed commencement date and a specified termination date, regardless of how short or long the period may be. For instance, a lease agreement granting occupancy from January 1, 2024, to December 31, 2024, constitutes such an arrangement.
The significance of this specific possessory interest lies in its contractual nature, providing clarity and predictability for both the lessor (landlord) and lessee (tenant). It establishes defined rights and obligations regarding property use, rent payment, and maintenance responsibilities, minimizing ambiguity and potential disputes. Historically, these arrangements were foundational for commercial and residential leasing, enabling efficient allocation of property resources.