What is a more limited interest in property compared to a freehold estate?

A leasehold estate represents a more limited interest in property when compared to a freehold estate. In a leasehold estate, the tenant has the right to use and occupy the property for a specific period of time, as outlined in a lease agreement, but does not own the property itself. The ownership remains with the landlord or property owner, which is key in distinguishing a leasehold from a freehold estate, where an individual has full ownership of the property, including the rights to possess, use, and transfer the property indefinitely.

Understanding this distinction is important when considering property rights and interests. In a freehold estate, such as fee simple or life estate, the owner possesses a greater scope of rights and can hold title to the property for an indefinite duration, whereas a leasehold is temporary and contingent upon the lease agreement's terms. This makes the leasehold estate a lesser form of ownership, limited primarily by its duration and the stipulations set forth in the lease.

Other options, like a life estate or fee simple estate, feature more comprehensive ownership rights, making them less limited than a leasehold. For example, a life estate grants rights for the duration of a person's life, while a fee simple estate signifies complete ownership. Tenancy at