Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which term describes a lease that continues for successive periods, unless terminated?

1. Leasehold estate

2. Periodic estate

3. Tenancy at sufferance

4. Tenancy for years

The correct answer is: Periodic estate

The term that describes a lease that continues for successive periods unless terminated is known as a periodic estate. This type of lease does not have a predetermined end date; instead, it automatically renews at the end of each period, which can be weekly, monthly, or yearly, depending on the agreement. The lease continues until either party gives notice to terminate, reflecting the ongoing nature of the arrangement. In contrast, a leasehold estate is a broader term that encompasses various types of leases not specifically tied to the periodic renewal aspect. Tenancy at sufferance refers to a situation where a tenant remains in possession of the property after their lease has expired, without the landlord’s consent, while a tenancy for years is a lease with a fixed term that explicitly states its start and end dates, lacking the continuous nature of a periodic estate.