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What is the main difference between a fee simple estate and a leasehold estate?

Correct Answer

B) Fee simple is absolute ownership, leasehold is temporary possession

Fee simple represents the highest form of ownership interest in land, providing absolute ownership that can be inherited and sold freely. Leasehold is a temporary right to possess and use land for a specified period under the terms of a lease agreement.

Answer Options
A
Fee simple is temporary ownership, leasehold is permanent
B
Fee simple is absolute ownership, leasehold is temporary possession
C
Fee simple requires rent payments, leasehold does not
D
Fee simple is for residential use, leasehold is for commercial use

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Related Topics & Key Terms

Key Terms:

fee simpleleaseholdabsolute ownershiptemporary possessionTorrens title
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