Which of the following statements about leasehold property is true?

A leasehold property is characterized by a contractual arrangement where one party (the leaseholder) has the right to use and occupy a property owned by another party (the freeholder) for a specified period, as defined in the lease agreement. One of the key features of a leasehold property is that the lease is time-limited; it has a fixed term that can range from several years to many decades. At the end of this term, ownership rights revert to the freeholder unless the lease is renewed, highlighting the non-permanent nature of the arrangement.

This time-limited aspect is crucial because it distinguishes leasehold from freehold properties, where ownership is permanent and not subject to expiration. Leaseholders typically must also adhere to various restrictions outlined by the lease, including limitations on alterations or improvements to the property, which reflects the presence of regulations tied to the lease agreement.

The other options present misconceptions about leasehold properties. For instance, the notion that the owner can build on the land without restrictions is not true since leaseholders often need permission for any major alterations. Furthermore, leasehold properties do not represent outright ownership; rather, they provide usage rights for a specific duration and revert to the freeholder after the lease expires. Lastly, while lease