Define “leasehold title.”

Leasehold title refers specifically to the type of title that grants the right to use and occupy a property under a lease agreement. This means that the individual or entity holding a leasehold title does not own the property outright; instead, they possess the right to use the property for a specified term, as detailed in the lease contract. This arrangement is common in situations where landowners lease property to businesses or individuals, allowing them to benefit from the property's use without transferring ownership.

The nature of leasehold title is fundamentally different from permanent ownership, which involves outright ownership of the property and the associated rights, as stated in one of the other options. Similarly, titles that are transferred through inheritance or held as collateral for a loan concern different legal frameworks and contexts, making them distinct from leasehold titles. Thus, understanding leasehold title is essential for those working within the realm of real estate and title insurance, as it determines the rights and responsibilities of both lessor and lessee under the lease agreement.