What is the difference between a leasehold estate and freehold estate?

The distinction between a leasehold estate and a freehold estate primarily revolves around the nature and duration of ownership rights. A leasehold estate represents a tenant's interest in property for a defined period of time, as dictated by the lease agreement. This type of arrangement typically comes with a specific start and end date, after which the rights to the property revert to the landlord or property owner.

In contrast, a freehold estate signifies ownership of real property, which can be held indefinitely without a specified end date. This means that the owner of a freehold estate has the rights to the property as long as they maintain ownership, which may include transferring it or selling it at their discretion.

The correct answer highlights the fact that leasehold estates are typically associated with shorter durations compared to the indefinite ownership associated with freehold estates, thus emphasizing the temporal nature of leasehold agreements.