In property law, there are concepts and terms for land that is owned outright and to certain degrees. There are also concepts and terms for land that is merely leased for a set amount of time. These are known respectively as freehold and leasehold estates.
The term “estate” may sound antiquated to most property owners today. For those purchasing real estate in Erie, Colorado and neighboring areas it invokes imagery of regal, sprawling manors of times past. In many ways, this is a true assessment. Like much of the United States’ common law system, our property law derives from England in its original form where there were, incidentally, a myriad of traditional estates, especially in centuries past. Just as we kept their laws, we also often kept their terminology. An estate is just one of these terms, tour neighborhoods such as Vista Ridge and others for estates big and small.
An estate for years represents what is known as a leasehold estate. It is also known as an estate for term or a tenancy for years. Since it is a leasehold estate, as opposed to a freehold estate, in most instances the original owner has leased out the land for a specified period of time to someone else. This is really no different than a renter who is leasing an apartment today. In this specific type of lease, the property owner defines a beginning and ending date, set for a specific term. As a result, the landowner is not required to provide a notice to vacate once the term ends. The ending date is simply the date the tenant needs to leave the property. As an added protection to tenants, this lease can’t be terminated before the specified end date unless both parties agree to it. The lease dictates the rights and obligations a landowner has to his or her tenant.
Leasehold estates thus imbue a tenant with the rights of possession and use but not of actual ownership. While an estate for years is generally considered the most common, there are three other types of leasehold estates. One is the periodic estate, where the lease automatically renews at a specified date (usually month-to-month). Another is the estate at will, where there is no fixed time period on the lease. It can last as long as both parties want it to. Lastly, there is a tenancy at sufferance, which is created when a tenant holds over after the lease expires. All of these leasehold estates (except perhaps the tenancy at sufferance!) are viable options that you as a landowner might consider when deciding to lease out your land.
Planning to move or relocate in Colorado? Receive helpful information about Boulder CO real estate or real estate in Lafayette CO by visiting BoulderHomeSource. Also, find detailed MLS real estate data on specific homes or properties for sale and receive help from real estate agents with the knowledge and expertise of the area.