Which term refers to possession rather than actual ownership?

The term that refers to possession rather than actual ownership is "tenancy." In the context of real estate, tenancy describes the legal right or status of an individual to occupy or possess a property, often through a lease agreement. This means that while the tenant has the right to use the property, they do not own it; ownership remains with the landlord or property owner.

In contrast, terms like "fee simple" indicate full ownership of a property, which includes the right to sell, transfer, or modify the property without restrictions imposed by others. An "encumbrance" refers to any claim against the property that can affect ownership, such as a mortgage or lien, but it does not address possession. An "easement" is a legal right to use someone else's land for a specific purpose, but it does not convey ownership or possession of the property.

Thus, tenancy is distinctly focused on the aspect of possession without conveying ownership, which aligns with the definition sought in the question.