Legal Terms in Real Estate -Terminologies & Words (A1)

 

A1. Types of Ownership Rights & Property Claims

1. Freehold

2. Leasehold

3. Co-ownership/ Joint Ownership

4. Encumbrance

5. Encroachment

6. Easement

1. Freehold

Freehold property can be defined as any property that is "free from hold" of any person/entity other than the owner, also known as the "freeholder". As a freeholder, you own the building as well as the land it’s built on, for an indefinite period of time, and can be inherited by a legal guardian. It is free from any encumbrances and can be easily transferred by registration of the sale deed.

2. Leasehold

Leasehold means you have the absolute right to occupy and use a property for a fixed period of time called the leasehold period (30, 60, 99 years), but you don’t have authority on the land the property is built on. A good example of leasehold property is the land given to project developers or builders who construct apartment/townships.

3. Co-ownership/ Joint Ownership

When there is more than one owner of a property, whereby each co-owner shares their interest in the property together, it is called a co-owned or jointly owned property.

4. Encumbrance

Encumbrance is a claim against a property by someone who is not the property owner. These are usually claimed when the property owner fails to pay the property taxes or easement charges on time. Encumbrances impacts the free use of the property and the property owner is restricted from making any renovations, sale, or transfer of the property till the dues are cleared.

5. Encroachment

Encroachment occurs when a property owner infringes on the neighbour's property rights by erecting a structure on the neighbor's land or authorising an extension onto the neighbour's land.

6. Easement

An easement is a legal right of one party to use the property of another for a specific purpose like accessing a public road or laying down utility lines/pipes. A fee must be paid to the property owner for the right of easement.

Courtesy: ASSURE SHIFT

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