What are the three types of property interest?

The three types of property interest encompass leased fee, leasehold, and fee simple, which represent fundamental categories of ownership and use rights in real estate.

Leased fee refers to the interest a landlord maintains in a property they lease to a tenant, entitling them to the received rents. Leasehold represents the tenant's interest in a property that they occupy and utilize under the lease agreement, granting them certain rights for the duration of the lease term. Fee simple is the most complete form of ownership, providing total control over a property, subject only to governmental regulations, zoning laws, and other limitations.

Recognizing these property interests is crucial for understanding the rights and responsibilities involved in real estate transactions. Each type has distinct implications for valuation, management, and legal considerations, which are integral concepts in the field of property tax consultancy.