Texas Real Estate State Practice Exam

Which of the following is an example of a leasehold estate?

1. Estate for years

2. Periodic Tenancy

3. Statutory Estate

4. Taxation

The correct answer is: Estate for years

A leasehold estate refers to a tenant's temporary right to occupy and use a property based on a lease agreement, which grants possession but not ownership. An estate for years is a specific type of leasehold estate characterized by a lease with a fixed start and end date, meaning it lasts for a predetermined time period such as months or years. This provides clarity for both the landlord and tenant, as the terms are well-defined. Periodic tenancy is also a type of leasehold estate but is distinguished by its ongoing nature, renewing automatically at specified intervals (such as weekly or monthly) until either party gives notice to terminate. While it is indeed a leasehold estate, the question asked for an example, and an estate for years is a more concrete and straightforward representation. Statutory estate and taxation are not types of leasehold estates. A statutory estate arises from the law and does not involve ownership or lease arrangements like leasehold estates do. Similarly, taxation relates to government levies on property and does not pertain to the rights of tenants under lease agreements. Thus, the estate for years stands out clearly as the most appropriate example of a leasehold estate among the choices presented.