What type of property interest does a lease grant?

A lease grants a possessory interest in property, which allows the tenant to occupy and use the property during the term of the lease. This type of interest is distinct from other property interests, such as fee simple or future interests, because it specifically pertains to the rights to possess and control the property temporarily. The tenant does not own the property outright but has the right to possess it and use it as specified in the lease agreement.

In the context of lease agreements, while the landlord maintains actual ownership of the property, the lease grants the tenant rights to possession, making it a possessory interest. This arrangement sets clear terms, including duration of occupancy, rent payment, and any restrictions or responsibilities, all of which define the tenant's legal claim to the property for the lease period.