Which of the following is an example of a less-than-freehold estate?
- fee simple defeasible
- fee simple absolute
- leasehold estate
- life estate
The answer is C. Real property estates fall into 2 broad classifications: freehold estates and less than freehold estates.
What’s the difference between the two? If you have a freehold estate then it means that you have some ownership interest in the estate. Anything that is “less than freehold” means you have no ownership interest in the estate – like if you rent a property or have a lease for a property. So, leasehold estate is the answer, because it implies a lease on the property.