Alabama Real Estate Practice Exam

What interest does a lessor hold in a leased property?

1. Leasehold

2. Fee Simple

3. Leased Fee

4. Estate for Years

The correct answer is: Leased Fee

A lessor is someone who owns the leased property but gives the rights to utilize it to someone else, typically in exchange for rental payments. This means the lessor holds a leased fee interest in the property, meaning they still hold title to the property but have granted some rights to the lessee. Option A, leasehold, refers to the rights held by the lessee, not the lessor. Option B, fee simple, refers to complete ownership and control over the property, which is not the case for a lessor. Option D, estate for years, refers to a limited time period for a lease, which is not specific to a lessor.