What is a possessory right or ownership interest in real estate commonly referred to as?

The term "estate" in real estate refers to the possessory right or ownership interest that an individual has in a property. An estate can denote the degree, quantity, nature, and extent of interest that a person has in real property. This encompasses different forms of ownership, such as freehold estates, where ownership is indefinite, and leasehold estates, which are for a specific duration.

Understanding this concept is essential in real estate, as it helps clarify the various rights and interests one may hold in a property. For instance, someone with a freehold estate has full ownership rights where they can control, possess, and use the property, whereas leasehold represents a temporary right to use the property granted through a lease agreement but does not confer ownership.

While terms like leasehold and title are relevant to property interests, they refer to different concepts, with leasehold signifying a temporary interest and title referring to the legal right to ownership. An encumbrance, on the other hand, refers to a claim against a property, such as a mortgage or lien, which can affect ownership but is not a direct representation of ownership interest itself.