What is an ownership interest in real estate called?

The term that best describes an ownership interest in real estate is a fee simple estate. A fee simple estate represents the most complete form of ownership, giving the owner full rights to the property. This includes the right to use the property as they see fit, to sell it, to lease it, and to pass it on to heirs.

While a lease and a leasehold estate are associated with the rights to use and occupy property without owning it outright, they do not equate to ownership interests. A tenancy, which can refer to the arrangement of a tenant occupying a rental property, is also distinct from ownership.

The leasehold estate signifies a tenant's rights to occupy and use the property for a specified period as outlined in a lease agreement, but it does not confer ownership rights similar to those found in a fee simple estate. Therefore, the correct answer indicating a true ownership interest in real estate highlights the significance of the fee simple estate in property law.