An estate in land defines the degree, quantity, nature, and extent of an owner’s interest in real property. Many types of estates exist, but not all interests in real estate are estates. To be an estate in land, an interest must allow possession, meaning the holding and enjoyment of the property either now or in the future, and must be measured according to time. Historically, estates in land have been classified primarily by their length of time of possession (i.e., as freehold estates and leasehold estates).
Freehold vs Leasehold Estates
Freehold estates last for an indeterminable length of time, such as for a lifetime or forever. They include fee simple (also sometimes called an indefeasible fee), defeasible fee, and life estates. The first two of these estates continue for an indefinite period and may be passed along to the owner’s heirs. A life estate is based on the lifetime of a person and ends when that individual dies.
Leasehold estates last for a fixed period of time. They include estates for years and estates from period to period. Estates at will and estates at sufferance also are leaseholds, though by their operation, they are not generally viewed as being for fixed terms.
