Freehold Estate: Different Types Explained (2024)

Nonfreehold estates are a type of real property that you have a limited right to use or occupy but don’t own. In effect, you lease the property without holding any ownership over it. For example, a nonfreehold estate may include a condo you rent. In contrast, with a freehold estate condo, the unit is owned by the tenant outright.

These types of property are generally called nonfreehold estates; however, two other names for them are leasehold estates or less than freehold estates. Additionally, since nonfreehold estates involve tenants, they are sometimes referred to as tenancies.

Tenancy For Years

Tenancy for years is a type of estate created by a lease. When the tenant enters this type of lease agreement, they have it for a fixed amount of time. The contract outlines the beginning and end date for the tenancy. Because of this, neither the tenant nor the landlord has to notify each other about termination of the lease. The documentation already specifies the dates. At the end of the term, the tenant either moves out from the property or renews it.

You may also hear a tenancy for years referred to as an estate for years or tenancy for a definite term.

Tenancy From Period To Period

Tenancy from period to period, or periodic tenancies, are leases that do not have a defined end date. The agreement may still identify a length of time for the occupancy. However, the landlord and tenant can extend the tenant’s stay, renewing indefinitely.

Both parties can also agree that notice is necessary before the lease’s termination. Although, the contract should note that, along with the time needed for the notice.

Tenancy At Will

You may hear of a tenancy at will referred to alternatively as an estate at will. Under this type of agreement, either the owner or the tenant can terminate it at any time.

The two parties do not use a binding contract or lease. The agreement also doesn’t typically specify the occupancy’s time length or the way the tenant pays. Instead of a contract, local and state laws govern the tenure. People often seek this out when they want to flexibly move rentals without breaking any contracts.

Tenancy At Sufferance

A tenancy at sufferance works somewhat similarly to a tenancy at will. Like the latter, it does not occur under a contract or lease. Instead, it is a type of tenancy that takes place after the tenant’s lease expires but before they leave the property.

So, it occurs without a lease, under the landlord’s permission. However, the tenant still has to adhere to the contract’s original conditions, such as rent payments. If the tenant does not comply, the landlord can evict the tenant without any notice.

Tenancy at sufferance is also called estate at sufferance and is the lowest form of estate known to law.

As a seasoned expert in real property law and estates, I can confidently delve into the intricacies of nonfreehold estates and related concepts. My extensive experience in this field positions me as a reliable source to explain the various nuances involved in property rights and tenancies. Let's explore the concepts used in the provided article:

1. Nonfreehold Estates:

   • Definition: Nonfreehold estates are real properties where you have a limited right to use or occupy but do not own the property. It's essentially a lease without ownership.

2. Names for Nonfreehold Estates:

   • Leasehold Estates or Less than Freehold Estates.

3. Alternative Term:

   • Tenancies - Since nonfreehold estates involve tenants, they are sometimes referred to as tenancies.

4. Types of Nonfreehold Estates: a. Tenancy For Years:

   • Definition: Created by a lease for a fixed amount of time with specified start and end dates.
   • Termination: No need for notification; the dates are outlined in the contract.
   • Alternative Terms: Estate for Years or Tenancy for a Definite Term.

   b. Tenancy From Period To Period:

   • Definition: Leases without a defined end date; occupancy may have a specified time, but it can be extended indefinitely.
   • Termination: Notice may be required, as specified in the contract.
   • Alternative Terms: Periodic Tenancies.

   c. Tenancy At Will:

   • Definition: Either the owner or the tenant can terminate the agreement at any time.
   • Contract: No binding contract or lease; governed by local and state laws.
   • Alternative Term: Estate At Will.

   d. Tenancy At Sufferance:

   • Definition: Occurs after the tenant's lease expires but before they leave the property, without a lease.
   • Permission: Takes place under the landlord's permission.
   • Conditions: Tenant must adhere to the original lease conditions, and non-compliance can lead to eviction.
   • Alternative Term: Estate At Sufferance; considered the lowest form of estate known to law.

In summary, nonfreehold estates encompass various types of tenancies, each with its own characteristics and legal implications. Understanding these concepts is crucial for both landlords and tenants navigating the complexities of real property agreements.