Texas Property Tax Consultant Practice Exam

Which of the following is NOT a common type of property interest?

1. Leased fee

2. Leasehold

3. Fee simple

4. Rental agreement

The correct answer is: Rental agreement

A rental agreement is not classified as a type of property interest in the same legal sense as the other options. A rental agreement is a contract between a landlord and a tenant that outlines the terms of renting property; it does not establish a property interest itself. In contrast, a leased fee represents the interest the lessor (landlord) holds in the property that is leased out. A leasehold, on the other hand, pertains to the interest of the lessee (tenant) in the property for the duration of the lease. Fee simple is the most comprehensive property interest one can hold, embodying complete ownership rights subject only to governmental powers such as taxation. Understanding these distinctions helps highlight why a rental agreement is fundamentally different, as it is merely the mechanism through which property interests may be conveyed rather than an interest itself.