What is a leased fee estate?

A leased fee estate refers to the ownership interest that a landlord maintains in a property that is leased to a tenant. This interest encompasses the rights to collect rent and to enjoy the property, as well as the right to regain full possession of the property upon the expiration of the lease. Essentially, it represents the value associated with the right to lease the property to someone else, which can be an important aspect of real estate valuation.

Understanding a leased fee estate is crucial in property appraisal because it affects how the property is perceived in the market and its potential income-generating capability. This ownership interest is distinct from the leasehold interest, which is held by the tenant who is leasing the property and does not convey ownership rights.

The other options reflect misunderstandings related to property rights and interests. For instance, a type of property that cannot be sold would not apply to the concept of a leased fee estate, as leased fee estates are indeed marketable. Similarly, the rights of a tenant refer to the leasehold interest, which is separate from the leased fee. An agreement for temporary property usage suggests a rental agreement, but does not emphasize the concept of ownership interest that defines a leased fee estate. Thus, the chosen answer accurately captures the essence of the