What is the difference between a fee simple and a leasehold estate?

A fee simple estate represents complete ownership of a property, which is the highest form of property ownership recognized by law. Under a fee simple estate, the owner has the right to use, occupy, and transfer the property without any limitations, subject only to zoning laws, deed restrictions, or other regulations. This form of ownership is indefinite in duration and can last until the owner decides to sell, transfer, or pass it on to heirs.

In contrast, a leasehold estate denotes a tenant's right to occupy and use a property for a specified period of time, as determined by a lease agreement. This does not grant complete ownership; rather, it provides possession and use within the terms set by the leaseholder and landlord. Therefore, the distinction lies in the duration and nature of rights held, where fee simple indicates full ownership while leasehold conveys a temporary right of use that will ultimately revert to the landlord after the lease term expires.