What is the difference between a leasehold and a freehold estate?

A leasehold estate and a freehold estate are two different types of property ownership found in California. The primary difference between the two is that a leasehold estate is a temporary interest in property that is owned by someone else, while a freehold estate is an interest in property that is held for an indefinite period of time. In a leasehold estate, the tenant does not actually own the property in question, but rather pays a rent to the “landlord” (or owner) in exchange for the right to use the property. The leasehold estate is limited to the duration of the agreement, after which time the property will revert to the owner (the landlord). A freehold estate, on the other hand, is a form of property ownership where the owner holds the property without any time limit or the requirement to pay rent. In this type of ownership, the owner holds the title to the property and can enjoy full legal possession of it, usually with few restrictions. In summary, a leasehold estate is a temporary interest in property owned by someone else, whereas a freehold estate is an interest in property held for an indefinite period of time. When considering either form of property ownership in California, it’s important to understand the differences between the two, so that you can make the best decision for your situation.

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What is the difference between a leasehold and a freehold estate?

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