Texas Property Tax Consultant Practice Exam

What are the three types of property interest?

1. Lessee, lessor, and tenant

2. Sales comparison, income approach, and cost approach

3. Leased fee, leasehold, and fee simple

4. Residential, industrial, and commercial

The correct answer is: Leased fee, leasehold, and fee simple

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.