Definition of estate is similar to definition of Assets. Estate is defined as all the properties that an individual person owns. Estate represents the legal ownership on properties of the individual. Estate are those properties on which an individual has right to use it, sell it or leased it. According to English property law with tell the nature of right on property. In the transaction of estate the buyer and seller describe the nature of use of property and extent of the right of property.
The term "Real estate" represents all the reality related property that an individual owns. Likewise there is another type of estate that is classified according the nature of right and nature of use.
There are major two general categories that are classifying bases of nature if right and use is mention below:
1. Estate based on right
2. Estate based on possession
Leased Fee Estate
Leased fee estate are those estate or property that are owned as a rent as lease for certain period of time. For a normal estate life of estate is infinite but for leased fee estate there is always a limited time of the life of estate.
There are two parties for the lease contract. Lease is a contract between two parties first is lessor that is owner of an Estate and another party is lessee that is the user of the Estate. Under the lease contract the owner of the assets gives right to use the Estate for certain period of time for the consideration.
There is two type of leasehold estate which is shown below:
1. Estate for year
2. Estate from year to year.
Value of Estate under leased fee estate is determined in following ways.
1. Market Value of Estate
2. Time period for the Estate is use as lease
3. Nature of use of estate
4. Cost saving from the lease
5. Depreciation and expected life of Estate
Based on above parameter leased fee estate have value that is transferred from lessor to lessee and from one lessee to another lessee.
Title is an abstract terms used for an individual or entity who owns the property to link the individual to the property. When a person has title it means that he or she has all the elements i.e. documents, records and acts that prove his or her ownership.
Historical summary of the publicly recorded documents related to or that affect the title is known as an abstract of title. In other words, abstract of title is all documents related to the title of an estate.
The effect of these documents on the seller's rightful possession can be known from the quality of title from seller to buyer. The title exists only for freehold estates.