The retained interest of the owner after granting a lease is called

The retained interest of the owner after granting a lease is called

• A. Freehold estate.
• B. Leased fee estate.
• C. Leasehold estate.
• D. Abstracted title.

Answer: (B)

When a property owner leases out the property, they don’t give up ownership; they keep an interest called the leased fee estate. This describes the landlord’s continuing ownership that is “leased” to the tenant for the term of the lease and which reverts back to the owner when the lease ends. The tenant, meanwhile, holds a leasehold estate for the duration of the lease. A freehold estate is full ownership with no fixed term, which isn’t what remains after granting a lease. An abstracted title is simply a summarized title report, not an estate.

When a property owner leases out the property, they don’t give up ownership; they keep an interest called the leased fee estate. This describes the landlord’s continuing ownership that is “leased” to the tenant for the term of the lease and which reverts back to the owner when the lease ends. The tenant, meanwhile, holds a leasehold estate for the duration of the lease. A freehold estate is full ownership with no fixed term, which isn’t what remains after granting a lease. An abstracted title is simply a summarized title report, not an estate.