Property OwnershipIntermediateArizona Exam

A 'leasehold estate' in Arizona gives the tenant:

AFee simple absolute ownership of the property, giving the leaseholder the right to sell, encumber, or devise the property in the same manner as any other fee owner

BThe right to possess and use the property for the duration of the lease but not ownershipCorrect

CA perpetual, irrevocable right to use the property with no time limit, which converts to a fee simple interest upon the death of the lessor

DAn equity interest in the property that grows over time as the tenant builds up credit toward a future purchase at the agreed option price

Why The right to possess and use the property for the duration of the lease but not ownership Is Correct

Answer B: The right to possess and use the property for the duration of the lease but not ownership

A leasehold estate grants the tenant the right to possess and use the property for the lease term, without ownership. The landlord retains the fee interest (the leased fee estate).

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.