home lease rent and free hold property difference know before buying house mdn

What is the difference between lease, rent and free hold property?

These three types of property differ in the level of ownership and control, based on which their use and ownership rights are determined. Lease, rent, and freehold property refer to three different types of land ownership, and there are differences between them.

Leasehold Property

• Lease property is a type of land that is owned by another person or organization who has given it on rent for a long period of time.

• The owner of a leased property does not have ownership rights in manufacturing, use, and marketing.

• The lease period of a leased property can generally be 99 years, 125 years, or other periods. After the termination of the lease, the owner or leaseholder of the land may reconsider permission for ownership.

Rental Property

• Rental property is land that is owned by an individual or organization, and they rent it out to others.

• The owner of a rented property has ownership rights to use the land, but cannot use it himself (this is a tenant’s right).

Freehold Property

• Freehold property is land whose complete ownership and control rests with its owner.

• There is no rental period, and the owner can use it himself or sell it as he wants.

• The owner of a freehold property has complete control over the ownership, construction, marketing, and use of the land.