What does a lease create in real estate law?

• A. Non-possessory interest
• B. Estate (interest) in land
• C. Personal license
• D. Easement

Answer: (B)

A lease creates a leasehold estate, a possessory interest in real property for a defined period. Even though the tenant doesn’t own the property in fee simple, the lease gives exclusive possession and use of the land for the term, which is a real property interest. It’s not a personal license, which is merely permission and can be revoked and does not grant exclusive possession, and it’s not an easement, which allows use of someone else’s land without giving the holder exclusive possession. So a lease clearly establishes an estate (interest) in land.