A leasehold interest in real property, classified as personal property despite involving real estate.
Why Chattel Real matters on the exam
This term belongs to Property Ownership. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Chattel Real
Every Freehold question shows why the right answer is right — and cites its source.
Which best describes the legal nature of a leasehold estate?
A form of personal property, sometimes called a chattel real
A freehold estate of indefinite duration
An easement appurtenant to the leased land
A lien against the landlord's fee title
Show answer & explanation
A form of personal property, sometimes called a chattel real — Although a leasehold involves rights in real property, the tenant's interest itself is classified as personal property, traditionally termed a chattel real, distinguishing it from the landlord's freehold estate.
Source: PSI National Real Estate Exam Content Outline §8 Leasing & Property Management
Leasehold estates are classified as which type of property interest?
Freehold estates, the same broad category that includes a fee simple absolute interest in land
Personal property, known as a chattel real
Fee simple estates, the most complete form of ownership interest recognized in real property
Easements in gross, a personal right to use land that is not attached to any dominant estate
Show answer & explanation
Personal property, known as a chattel real — A leasehold gives a tenant temporary possession without ownership of the fee, so the law classifies it as personal property known as a chattel real, not a freehold estate.
Source: PSI National Real Estate Exam Content Outline §1 Property Ownership
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