Certified Residential Appraiser Practice Exam

In a lease scenario, who retains ownership of the property despite the lease?

1. Lessor

2. Lessee

3. Servient Tenement

4. Dominant Tenement

The correct answer is: Lessor

In a lease scenario, the lessor retains ownership of the property despite the existence of the lease. A lease is a contractual agreement in which the lessor (the property owner) grants the lessee (the tenant) the right to use the property for a specified period, typically in exchange for rent. The lessor maintains legal title to the property, which means they have the right to sell or otherwise transfer ownership even while the lessee occupies it under the terms of the lease. This arrangement distinguishes the lessor as the party with ongoing ownership and control over the property's rights. Meanwhile, the lessee has only a temporary right to use the property as stipulated in the lease agreement, without acquiring any ownership rights. The other terms, such as servient tenement and dominant tenement, are primarily used in the context of easements and property rights related to land use, rather than lease agreements. Therefore, they do not apply to this scenario, reinforcing that the lessor is indeed the party who retains ownership of the property in a lease situation.