Freehold and leasehold estates in land

Nature and duration

An estate in land describes the nature and duration of a right to possess real property. Freeholds are ownership estates. Leaseholds give tenants possession while the landlord retains an ownership interest.

Freehold estates

Fee simple absolute is the broadest ownership estate, potentially lasting indefinitely and passing to successors. Taxes, zoning, easements, and other valid restrictions still apply. A defeasible fee may end because of a condition. California abolished the fee simple determinable and the possibility of reverter (Civil Code section 885.020): a grant saying the estate ends upon an event is treated as a fee subject to a condition subsequent, and the grantor holds a power of termination that must be exercised. The estate does not end on its own.

A life estate lasts for a measuring person's life. A grant to Ana for Ana's life ends at Ana's death; a grant measured by Ben's life ends at Ben's death. Transferring the life estate does not extend it. A life tenant must not commit waste that improperly harms the future interest.

A reversion is the future interest retained by the grantor. A remainder is a future interest created in a third person to take possession when the preceding estate ends.

Leasehold estates

Estate for years: a definite duration, even if shorter than one year.
Periodic tenancy: recurring periods, such as month to month, continuing until properly terminated.
Tenancy at will: no fixed term, continuing at the parties' will subject to applicable law.
Tenancy at sufferance: lawful entry followed by remaining after the right to possession expires without the landlord's consent; it is not a new agreed lease.

Termination and recovery of possession must follow applicable law; these classifications do not authorize self-help eviction.

Estates divide into freeholds and leaseholds. Freeholds include fee simple with potentially indefinite duration and life estates measured by a life. Leaseholds include estates for years with definite duration, periodic tenancies with recurring periods, tenancies at will without a fixed term, and tenancies at sufferance involving an unconsented holdover. — Classify the estate by its nature and duration.

California applications

Under California Civil Code section 783, a condominium can be an inheritable or perpetual estate, a life estate, an estate for years, or a combination. Its form alone does not tell you duration. Under section 783.1, both the separate interest in a stock cooperative and the related corporate interest are interests in real property.