California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Under a lease agreement, who holds the leasehold estate?

  1. Beneficiary

  2. Lessee/Tenant

  3. Lessor

  4. None of the above

The correct answer is: Beneficiary

In a lease agreement, the party that holds the leasehold estate is the lessee, or tenant. The leasehold estate refers to the tenant's right to occupy and use the property for a specified period according to the terms outlined in the lease agreement. This interest allows the tenant to benefit from the property for the duration of the lease, but it does not equate to ownership, which remains with the lessor, or landlord. In this context, the lessor retains ownership while granting the lessee a temporary interest in the property, thus establishing the leasehold estate. Understanding this distinction is crucial, as it highlights the relationship between the two parties and outlines the rights and responsibilities of each.

More Questions Like This