Concepts Definitions
Lease Contract / Leasehold Estate: A contract that transfers the right of possession and use of real property for a specified period in exchange for rent. In California, it is generally considered personal property.
Personal Property (Chattel / Chattel Real): Movable items not permanently attached to real estate. A lease is specifically identified as “chattel real,” which is personal property connected to real estate.
Real Property: Land and anything permanently attached to it, including fixtures, improvements, and appurtenances, indicating ownership. While a lease involves real property, it is an interest in real property rather than real property itself.
Freehold Estate: An estate in real property that is of indefinite duration, signifying ownership (e.g., Fee Simple, Life Estate). Leasehold estates are explicitly described as “non-freehold estates” or “less-than-freehold estates” because they grant possession for a limited period without conveying ownership.
Estate for Years & Periodic Tenancy: These are common examples of leasehold estates, which are types of non-freehold estates.
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