About Estate Types:

Property rights and interests are held and conveyed in a number of ways, and in order to form an accurate opinion of value, an appraiser must know what rights are held by the owner, and what rights if any are being transferred.

The most inclusive type of estate, or group of property rights, as well as the most common, is referred to as "Fee Simple."

• Estate: A right or interest in property.

• Fee Simple Estate: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

• Leased Fee Interest: An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others.  The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.

• Leasehold Interest: The interest held by the lessee (the tenant or renter) through a lease transferring the rights of use and occupancy for a stated term under certain conditions.

• Easement: An interest in real property that conveys use, but not ownership, of a portion of an owner's property.

* definitions from The Dictionary of Real Estate Appraisal - Fourth Edition,
   Appraisal Institute, 2002

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