What is an example of a non-freehold estate?

A non-freehold estate refers to an interest in real property that does not include ownership of the land itself, typically characterized by a limited duration. A land installment contract is a prime example of this type of estate. In this agreement, the buyer pays the seller in installments to eventually acquire ownership of the property, but until the full payment is made, the seller retains legal title. This arrangement means the buyer does not hold full ownership rights, distinguishing it as a non-freehold estate.

In contrast, a life estate, fee simple estate, and remainder estate grant varying degrees of ownership interest in real property. A life estate provides rights to use and occupy the property for the duration of a person's life; a fee simple estate represents the highest form of property ownership with no time limit; and a remainder estate exists in conjunction with a life estate, where future ownership is passed on after the life tenant's interest concludes. These types of estates reflect ownership rights, which are not characteristic of non-freehold estates. Thus, the land installment contract stands out as a clear example of a non-freehold estate.