Foundations
Beginner10 min read

Estates & Forms of Ownership

Freehold vs. leasehold estates and how title can be held.

An 'estate' is the degree, quantity, and nature of a person's interest in land. The biggest split is between freehold estates (ownership) and leasehold estates (the right to possess but not own).

Freehold estates

  • Fee simple absolute — the highest form of ownership; complete and indefinite.
  • Defeasible fee — ownership subject to a condition that can end it.
  • Life estate — ownership measured by someone's lifetime; reverts or passes to a remainderman afterward.

Ways to hold title

Tenancy in severalty
Ownership by one person or entity alone.
Joint tenancy
Co-ownership with right of survivorship; requires the four unities (time, title, interest, possession).
Tenancy in common
Co-ownership with no survivorship; shares pass to heirs and can be unequal.
Tenancy by the entirety
Joint ownership between spouses with survivorship — recognized in Virginia.

Virginia recognizes tenancy by the entirety, which protects marital property from the individual debts of one spouse. This is a common state-portion question.

Key takeaways

  • Freehold = ownership; leasehold = right to possess.
  • Joint tenancy carries right of survivorship; tenancy in common does not.
  • Virginia recognizes tenancy by the entirety for married couples.