Certified Residential Appraiser Practice Exam

In a leasehold estate, who is known as the lessee?

1. The landlord

2. The property owner

3. The one paying rent

4. The real estate agent

The correct answer is: The one paying rent

In a leasehold estate, the lessee is defined as the individual or entity that has the right to use and occupy the property through a lease agreement, typically in exchange for rent. This relationship is established when the lessee concludes a formal lease with the property owner or landlord, granting them permission to occupy the premises for a specified period while adhering to the terms outlined in the contract, such as rent payments and conditions of use. The lessee, therefore, is fundamentally the party benefiting from the right to use the property without owning it outright, which distinguishes them from the landlord or property owner, who retains ownership of the property. Given this arrangement, it is the lessee who is responsible for paying rent, making that option the correct identification in the context of this question. Other roles, such as the landlord, refer to the property owner who leases out the space, while real estate agents act as intermediaries in the leasing process but do not occupy the property themselves. Thus, understanding the relationship between lessees and landlords is crucial in grasping the concepts surrounding leasehold estates.