What is meant by “leasehold estate” in real estate?

A leasehold estate refers to the tenant's right to occupy and use property based on a lease agreement with the property owner. This arrangement provides the tenant with a legal interest in the property for a specified period, allowing them to enjoy the premises as outlined in the lease terms.

In contrast, the other options do not accurately describe a leasehold estate. The owner's right to sell property focuses on the ownership aspect rather than the tenant's rights. The duration of a property lease pertains to the length of time the leasehold estate is valid but does not define what a leasehold estate is in legal terms. The market value of a rental property relates to its worth in the market but doesn't concern the rights of tenants to occupy the premises. Therefore, the correct understanding of a leasehold estate centers around the tenant's rights granted through a lease, which is precisely what option B encapsulates.