Which of the following is true about a leasehold estate?

A leasehold estate is indeed characterized by the allowance of temporary use of property under specified terms. This legal arrangement means that while the tenant has the right to occupy and use the property for a certain period, they do not own the property permanently. Instead, the landlord retains ownership, and the tenant's rights are defined by the lease agreement, which stipulates duration, rent payment, and other terms.

The nature of leasehold estates caters to both residential and commercial properties, making it a versatile option for various types of tenants. Therefore, it allows individuals or businesses to use real estate without the financial burden of purchasing the property outright, providing flexibility and access to real estate for a specified duration as agreed upon in the lease.