Estates in Land: The Fee Simple Estate and the Life Estate

A real estate owner has the same rights as an owner of personal property: the right to possess it, to control it, to enjoy it, and to exclude it from others, as well as the right to dispose of it by selling it, gifting it, abandoning it, or bequeathing it. This is the classic idea of ownership. However, ownership or possession of real property is more complex than it is for personal property. Real estate interests vary both in types of interest and to their duration, and whether such interests are transferrable. A real estate interest can also depend on events or specific actions. Anyone purchasing real estate should know what kind of estate is being transferred, because it can severely limit the rights of the new property owner, and will also affect the value of the real estate.

There are numerous terms that define the different interests in real property, and the most central concept is the estate in land. An estate in land is an interest in real property that allows possession either now or sometime in the future for a specific or unlimited period of time.

A freehold estate is one where the duration of ownership is indeterminate, which could be for a lifetime of an individual or an unlimited duration. In most cases, for instance, the real estate that you buy is a freehold estate.

A leasehold estate lasts for a definite period of time. Leasehold estates include estate for years, estate at will, and estate at sufferance. An estate for years lasts for a definite period of time. For example, a tenant signing a 1 year lease has such an estate in years. An estate at will is one where a tenant can stay until either the tenant or the owner terminates the possession. An estate at sufferance exists when the tenant stays after the lease has expired, in which case, the landlord can expel the tenant at any time.