nonfreehold

Nonfreehold is a real estate term used to describe property interests that do not amount to ownership of the land and buildings in perpetuity. In contrast, freehold denotes full ownership, typically lasting indefinitely and including both the soil and the improvements on it. The nonfreehold category covers rights that are limited in duration or scope, such as leaseholds and other arrangements that grant possession or use without title to the land.

Common examples include leasehold interests, where a tenant holds the right to occupy and use the property for a defined term under a lease agreement, paying rent and usually complying with conditions set by the landlord. Other nonfreehold forms can include life estates (ownership limited to a person’s lifetime) and certain licenses or easements that confer use rights but not full ownership. The specific rights and restrictions vary by jurisdiction and the terms of the agreement.

Practical implications include termination at the end of the term, possible renewal options, and rent obligations. Transferability is typically governed by the contract; some leases allow assignment or subletting, while others do not. Financing can differ as well, since lenders may treat nonfreehold interests differently than freeholds, and mortgage terms may depend on lease duration and landlord consent.

Because terminology and treatment of nonfreehold interests vary by country and market, prospective buyers or tenants should review the governing documents and local law to understand rights, responsibilities, renewal prospects, and long-term costs.