Property OwnershipIntermediateCalifornia Exam
Which type of lease creates a freehold estate rather than a leasehold estate?
ATenancy for years
BPeriodic tenancy
CLife estateCorrect
DTenancy at will
Why Life estate Is Correct
Answer C: Life estate
A life estate is a freehold estate — a form of ownership — not a leasehold. Leasehold estates include tenancy for years, periodic tenancy, tenancy at will, and tenancy at sufferance.
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.
Key Property Ownership Terms in This Question
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Key Terms to Know
Fee Simple
The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
Life EstateA freehold interest in real property that lasts only for the duration of a specified person's life.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
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