What type of property interest allows tenants to occupy and use property they do not own?

The correct response is the leasehold estate, as it specifically addresses the rights of tenants to occupy and use property that belongs to someone else. In a leasehold estate, a tenant enters into a legal agreement with the property owner (landlord) that grants them the right to use and enjoy the property for a defined period of time, under specified conditions, usually in exchange for rent.

This legal arrangement allows tenants to have exclusive possession and use of the property while not actually owning it. It creates a relationship where the landlord retains ownership rights, but the tenant has a temporary and legal right to occupy the property as per the lease terms.

Other options, such as freehold estate, fee simple, and tenancy at sufferance, describe different forms of property interests or arrangements. Freehold estates and fee simple involve ownership of the property, indicating a more permanent interest that includes both rights to use and ownership over the property itself. Tenancy at sufferance refers to a situation where a tenant remains in possession of the property after the lease has expired without the landlord's consent, which does not encapsulate the typical rights afforded to tenants under a leasehold estate.