Which three types of property interest are commonly recognized?

The three types of property interest commonly recognized are indeed the leased fee, leasehold, and fee simple.

The leased fee interest represents the ownership interest held by a landlord in a property that is leased to a tenant. This interest includes the right to receive rent, as well as the reversion of the property once the lease term ends.

The leasehold interest, on the other hand, is what the tenant possesses, granting them the right to use and occupy the property for the duration specified in the lease agreement. This interest is temporary and does not confer ownership of the property itself but provides a secured interest in its use.

Fee simple is the most comprehensive form of property ownership in which the owner has ultimate control over the property, including the right to use it, lease it, sell it, or bequeath it. It is characterized by the unlimited duration of ownership, unless restricted by zoning laws or other regulations.

Recognizing this combination of interests is essential as it presents the foundational aspects of property rights and responsibilities, guiding how properties can be utilized, transferred, and valued under the law.