Property Ownership

An Oregon property owner grants a 25-year lease for a commercial building to a retail tenant. This creates a:

AFee simple estate for the tenant
BLeasehold estate (chattel real) for the tenant✓ Correct
CLife estate for the tenant
DEasement for commercial purposes

Explanation

A long-term lease creates a leasehold estate (sometimes called chattel real) for the tenant. The tenant has a possessory interest in the property for the lease term but does not own the fee. Leasehold interests can be valued and even sold or subleased (subject to lease terms).

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