What is a leasehold estate?

A leasehold estate is an agreement between a tenant and a landlord in real estate law. In South Carolina, this is a type of legal arrangement that grants a tenant or lessee the right to use and occupy a piece of property over a period of time, most commonly on a year-to-year basis. The duration of the lease and the rental rate are defined within the lease agreement. Unlike a fee simple estate, which is an unrestricted form of ownership, a leasehold estate offers an individual or entity only a limited form of ownership over the property during the term of the agreement. At the end of the lease term, the tenant is required to relinquish possession and the rights to the property over to the landlord. Depending on the terms of the lease, a tenant may be required to pay rent for the period of the lease, taxes, insurance, and/or repairs. Leasehold estates are common in commercial real estate, such as shopping centers, apartment complexes, and office buildings. They may also be established for residential real estate, such as single-family homes or condominiums. The flexibility of a leasehold estate can benefit both the landlord and the tenant. It gives the tenant the opportunity to occupy the property without owning it, while also allowing the landlord to receive rental income and maintain ownership of the property.

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What is a leasehold estate?

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