A freehold estate is an estate involving ownership. There are two types of freehold estates – fee simple and life estate.
In a fee simple estate which means you have 100% ownership, there are four ways it can be held.
1. estate in severalty – sole ownership
2. tenancy in common – held by two or more persons. Each person has undivided interest in the whole property. All owners have equal rights.
3. joint tenancy – shared by two or more persons that must have equal and undivided interests.
4. tenancy by the entireties – an estate for husband and wife only.
A life estate is created when an owner of a fee simple estate conveys ownership to another, but only for the balance of the lifetime of the party to whom the property is conveyed.
Seek advice of a real estate lawyer in order to determine which type of estate you would like when owning a property.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL