What does the term lease refer to in real estate?

In real estate, the term "lease" specifically refers to a contractual agreement that allows one party, the lessee, to use and occupy property owned by another party, the lessor, in exchange for payment, typically in the form of rent. This agreement outlines the terms and conditions under which the property can be used, including duration, payment amounts, responsibilities for maintenance, and other important stipulations.

The essence of a lease is its nature as a binding contract that delineates the rights and obligations of both the landlord and tenant. It grants the tenant the right to possess and use the property for a specified period, while ensuring the landlord retains ownership and certain rights over the property. This arrangement is fundamental in real estate transactions as it allows for the use of property without the transfer of ownership.

The other options do not accurately encapsulate the definition of a lease within the context of real estate. A temporary sale of property implies a transfer of ownership, which is not characteristic of a lease. A legal process to transfer property rights would refer to conveyance rather than leasing. Lastly, a form of title insurance provides protection against losses from defects in title, which is unrelated to the usage agreement represented by a lease. Thus, option B captures the key elements