Leasehold estates are created through a lease agreement between a landlord (lessor) and a tenant (lessee). The tenant has the right to exclusive possession of the property for the term of the lease, but does not own the property. At the end of the lease term, the right of possession reverts back to the landlord.
Renting an apartment is a leasehold estate. You have the right to live in the apartment for the duration of your lease agreement, but you do not own the apartment.
Leasehold Estate is tested in the Property Ownership section of the real estate exam. Questions typically present a scenario and ask you to apply the concept. Here are examples of how exam questions are phrased:
A life estate is an example of:
A freehold could be any of the following EXCEPT
An estate in land vested in a grantee “until she marries” is properly classifiable as
Practice with all 10 related questions below to build confidence in this topic area.
Think of 'lease' as a rental agreement. Focus on the defined term and the lack of ownership.
Related Terms
Practice Questions
A life estate is an example of:
A freehold could be any of the following EXCEPT
An estate in land vested in a grantee “until she marries” is properly classifiable as
An example of a less-than-freehold estate is
With respect to real property, the term estate is BEST described as
The holder of which of the following would be a “nonfreeholder?”
The term fee used in connection with real property means
The term intestate MOST nearly means to die
The property of a person who dies intestate passes by
Which of the following words is NOT asso- ciated with the others in the group?
Related Concepts
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Frequently Asked Questions
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