Certified Residential Appraiser Practice Exam

Which type of tenancy is typically defined by a specific term and duration?

1. Periodic Estate

2. Leasehold Estate

3. Estate for Years

4. Tenancy at Will

The correct answer is: Estate for Years

The type of tenancy that is defined by a specific term and duration is commonly recognized as an Estate for Years. This arrangement is characterized by a lease agreement that stipulates a fixed start and end date, creating a clear timeline for the tenant's rights and obligations. The defining feature of an Estate for Years is that the lease exists for a specified period, which distinguishes it from other forms of tenancy. For instance, if a tenant signs a lease for one year, the terms are set to last precisely that long, with legal commitments relating to both parties' rights and responsibilities governed throughout that duration. It offers both the landlord and tenant predictability regarding occupancy and rent payments. In contrast, a Leasehold Estate can refer to various types of leasing agreements, not limited to a fixed duration, making it more general in nature. A Periodic Estate is associated with tenancies that renew automatically at specified intervals, such as month-to-month, without a determined end date. Finally, a Tenancy at Will allows either party to terminate the arrangement at any time, further emphasizing the lack of a defined term. This makes Estate for Years distinct in its definition by virtue of having a clear, fixed duration.