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

A leasehold estate and a freehold estate are two distinct types of property law in North Carolina. A leasehold estate is a form of real estate property in which a tenant holds the legal right to use or occupy a property according to a pre-arranged agreement for a given amount of time. The tenant’s right to use the property is governed by the terms of the lease. The landowner or landlord retains the complete right to the property and will eventually regain possession after the lease term concludes. A freehold estate is an unrestricted legal right of absolute ownership and control over a piece of property. A freehold estate is permanent and can be conveyed to another person through legal methods such as a deed. Unlike a leasehold estate, the owner of the freehold estate has complete authority to sell, use, or lease the property without any restrictions. In summary, the key distinction between a leasehold and a freehold estate is that a leasehold estate is a temporary tenancy that is subject to the terms of the lease, while a freehold estate is an absolute legal right of ownership and control.

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

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