Kovats Real Estate School Practice Test

Which type of estate in land is described as lasting forever?

1. Life estate

2. Leasehold estate

3. Fee simple estate

4. Freehold estate

The correct answer is: Fee simple estate

A fee simple estate is described as lasting forever because it grants the owner the maximum interest in the property with the least limitations. This type of estate is inheritable and can be conveyed to heirs or sold to others without any conditions that would terminate the ownership. In a fee simple estate, the owner has full control over the land and can use it, lease it, improve it, or transfer it at will. The only limitations may come from zoning laws or private restrictions, but in terms of ownership duration, it is considered perpetual. This contrasts with other types of estates, such as a life estate, which lasts only for the lifetime of a specified person, or a leasehold estate, which is held for a specific term of years and reverts back to the landlord at the end of that term. A freehold estate is a broader term that includes fee simple estate among other forms, but it does not specifically denote perpetual ownership like a fee simple estate does.