What are the three main types of property ownership?

The three main types of property ownership—freehold, leasehold, and cooperative—represent distinct legal frameworks governing how individuals can possess property.

Freehold ownership refers to the complete ownership of a property and the land it sits on, generally perceived as the highest form of property ownership. This means the owner has an indefinite duration of interest, providing them with full rights to use, sell, or develop the property as they see fit.

Leasehold ownership involves a temporary right to occupy or use a property, where the owner holds a lease from the freeholder for a specific term. After the lease expires, ownership of the property returns to the freeholder, indicating a limited duration of rights when compared to freehold ownership.

Cooperative ownership (or co-op) is a type where individuals own shares in a corporation that owns the property, rather than owning the property directly. Members have the right to use a designated space within the property, and the cooperative collectively owns and maintains the building, demonstrating a unique communal ownership structure.

Understanding these three types provides a solid foundation for grasping how real property rights are structured and transferred in real estate, which is critical knowledge for real estate professionals.