Fee Simple (FS) and Leasehold (LH) Explained

A Fee Simple (FS) is an outright ownership of real property. The buyer purchases an actual deeded interest in real estate and receives a title in perpetuity.

Having a Leasehold (LH) on the other hand means that you have the right to use a piece of land for a set period of time (usually 55 years) in exchange for rent. A leaseholder has the same basic ownership rights, protections and obligations as the FS system, except that ownership is not in perpetuity and has a specified expiration date (in some cases the agreement might include a right of first refusal to renew the LH prior to its expiration). Upon expiration of the lease, the right to use the land returns to the fee simple owner.

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