What is the tenant's interest in real property called?

The tenant's interest in real property is referred to as a leasehold estate. A leasehold estate is the right to occupy and use a property for a specified period, granted by a landlord (the lessor) to a tenant (the lessee) under the terms of a lease agreement. This arrangement allows the tenant to have possession and use of the property while respecting the terms set forth in the lease, such as rent payments and duration of tenancy.

Understanding this concept is crucial because it distinguishes the tenant's position from that of the landlord's ownership, which is categorized as a freehold estate. While freehold estates signify ownership in real property for an indefinite period, leasehold estates are specifically tied to the temporary use and occupancy rights of the tenant. Other terms like mortgage estate and tenancy at sufferance refer to different legal concepts that do not accurately describe a tenant's interest in the property. A mortgage estate relates to the bank or lender's interest in the property that secures a loan, while a tenancy at sufferance occurs when a tenant remains in the property without the landlord's consent after the lease has expired. Thus, leasehold estate is the correct choice to represent the tenant’s rights in the real property.