Question

A lease of real property for a fixed period of time at a set rate of rent creates:

Selections

A. A lien on the property

B. An estate for years

C. A freehold estate

D. An estate in co-tenancy

---

Answer: B

---

5 Keys Summary

1. A lease agreement for a fixed period of time, whether short (two weeks) or long (several years), creates a Term Tenancy or Estate for Years.

2. The defining element of an Estate for Years is that it has a specific beginning date and a specific ending date, causing it to terminate automatically without either party needing to give formal notice.

3. This type of rental agreement creates a Leasehold Estate (also known as a less-than-freehold estate), which grants possession rights but is distinct from a Freehold Estate, which represents ownership of indefinite duration.

4. The lease itself is not a lien because a lien is a legal claim on property serving as security for a debt (like a mortgage), whereas a lease defines the tenant’s right to use and possess the property.

5. An Estate in Co-tenancy refers to shared ownership between multiple parties (like joint tenancy or tenancy in common), which is a separate concept from the temporary possessory rights granted to a tenant under a fixed-term lease.

Pages: 1 2 3