What is a characteristic of leaseholder ownership?

A characteristic of leaseholder ownership is that it is for a definite period of time. This type of ownership occurs when a tenant (the leaseholder) rents a property for a specific duration, which is typically outlined in a lease agreement. This can range from several months to many years, but the key aspect is that it has a clearly defined beginning and end. At the end of the lease term, the leaseholder either must vacate the property or may have the option to renew the lease based on the terms set forth.

The structure of leasehold ownership contrasts with other forms of property ownership, such as fee simple ownership, which is indefinite and does not expire until the owner chooses to sell or transfer the property. Additionally, leasehold ownership does not confer ultimate ownership rights to the leaseholder; rather, the property owner retains ultimate ownership. While leases can sometimes include clauses that allow for transfer to third parties, this is not a universal characteristic of leasehold arrangements, as some leases may restrict transferability.