Which term refers to a possessory interest in real property?

The term that refers to a possessory interest in real property is "Estate." An estate in real property denotes the degree, quantity, nature, and extent of ownership rights that a person possesses in that property. When someone holds an estate, they have the right to possess, use, and enjoy the property. This concept is fundamental in real estate as it determines the legality of ownership and the rights associated with that ownership.

In contrast, liability refers to obligations or debts that may arise from owning a property, rather than an ownership interest itself. Equity refers to the ownership value in a property after deducting any liabilities, such as mortgages; it is not a term that describes a possessory interest directly. Title, while related to ownership, specifically refers to the legal right to own the property rather than the actual interest one has in possession. Therefore, "Estate" is the most accurate term to encompass the idea of possessory interest in real property.