What is the difference between a fee simple estate and a leasehold estate?

A fee simple estate is characterized by absolute ownership of the property. This type of estate allows the owner to use the property as they wish, sell it, transfer it, or will it to others, making it a permanent form of property interest without a specified end date. In contrast, a leasehold estate provides only temporary rights to use the property, typically outlined in a lease agreement that specifies the duration of use and the terms under which the tenant can occupy the property. Once the lease term ends, the rights to the property revert back to the landlord or property owner.

This distinction highlights that while a fee simple estate represents complete ownership, a leasehold estate is fundamentally different as it conveys limited rights tied to the duration of the lease agreement. The temporary nature and the dependency on the lease terms differentiate the two, making option B the accurate choice in defining the key distinction between fee simple estates and leasehold estates.