In a leasehold and leased fee interest situation, who retains ownership of the property?

In a leasehold and leased fee interest scenario, the landlord retains ownership of the property. This structure is characterized by two distinct interests: the leased fee interest, which is held by the landlord or property owner, and the leasehold interest, which is held by the tenant.

The landlord, as the owner, is entitled to receive rent from the tenant for the use of the property. While the tenant possesses the right to use and occupy the property during the lease term, this occupancy is granted through a contractual agreement, which does not transfer ownership of the property itself. The lease does not convey any ownership rights; rather, it creates a temporary interest in the property for the tenant.

Understanding this distinction is vital in real estate transactions and property management, as it clarifies the rights and responsibilities of both parties involved in a lease agreement.