Certified Residential Appraiser Practice Exam

What type of estate does a landlord possess in relation to the tenant?

1. Leasehold estate

2. Freehold estate

3. Title estate

4. Equitable estate

The correct answer is: Freehold estate

The type of estate that a landlord possesses in relation to a tenant is a freehold estate. A freehold estate refers to an interest in a property that is of indefinite duration, essentially meaning that the landlord has ownership of the property and the rights that come with that ownership. This can include the right to lease the property to tenants, thereby creating a rental agreement that allows the tenants to occupy and use the property for a specified time. In this context, the landlord holds the freehold estate, while the tenant holds a leasehold estate, which is a temporary right to occupy and use the property under the terms of the lease. The leasehold estate does not provide ownership of the property but provides a right of use that is limited by the terms of the lease agreement. Other options like title estate and equitable estate are not commonly used terms in the context of landlord-tenant relationships and do not accurately depict the nature of the landlord's interest in the property. Consequently, the correct choice reflects the understanding of ownership and the rights associated with property in a landlord-tenant relationship.