Idaho Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

The correct answer is related to the definition of "leasehold." This term describes a legal arrangement where one party (the lessee) is granted the right to occupy and use land or property owned by another party (the lessor) for a specified period, under specific conditions outlined in a lease agreement. It establishes a legal relationship between landlord and tenant, detailing the rights, responsibilities, and obligations of each party.

While adverse possession does involve occupying land under certain conditions, it refers to a legal doctrine allowing a person to claim ownership of land after openly occupying it for a statutory period without the permission of the original owner. An easement pertains to a right to use another's property for a specific purpose, but it does not confer ownership or the right to occupy the property. A license grants permission to use property but can be revoked at any time and does not create a possessory interest in the land.

Understanding this distinction highlights why the concept of a leasehold is crucial in real estate, as it defines a tenant's rights within a legal framework that protects both parties involved.