A tenant holds a 10-year lease with 7 years remaining. The tenant's interest is a:
Correct Answer
A) Leasehold estate
Why this is correct: A tenant's interest in a leased property is a leasehold estate, granting the right to use and occupy for the lease term. Why the other choices are wrong: "Leased fee estate" is the landlord's interest, not the tenant's. "Life estate measured by the term" is incorrect; a life estate ends on a life, not a lease term. "Fee simple determinable interest" is a freehold estate that can revert on a condition, not a leasehold. Exam tip: Tenant holds leasehold; landlord holds leased fee. Always specify which estate is being appraised.
Why This Is the Correct Answer
Why this is correct: A tenant's interest in a leased property is a leasehold estate, granting the right to use and occupy for the lease term. Why the other choices are wrong: "Leased fee estate" is the landlord's interest, not the tenant's. "Life estate measured by the term" is incorrect; a life estate ends on a life, not a lease term. "Fee simple determinable interest" is a freehold estate that can revert on a condition, not a leasehold. Exam tip: Tenant holds leasehold; landlord holds leased fee. Always specify which estate is being appraised.
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