Nova Scotia Real Estate Practice Exam 2025 – Complete Prep Guide

Leasehold property ownership is characterized by the concept of owning the rights to occupy and use a property for a specified period, while not owning the land itself. Typically, in a leasehold arrangement, the land is owned by a landlord or lessor, and the leaseholder holds rights to the property, such as buildings or improvements, under a lease agreement that outlines the terms and duration of their occupancy.

Having ownership of a property without the land means that the leaseholder's rights are limited to the terms set forth in the lease agreement, which may include obligations for maintenance, rental payments, and other factors defined in the contract. This distinguishes leasehold ownership from freehold ownership, in which the owner has permanent rights to both the land and any structures on it without any time limit.

In essence, leasehold ownership reflects a temporary arrangement, where the value derived comes from the use of the property, rather than outright ownership of the land itself. This understanding is crucial for real estate transactions, especially when evaluating property rights and terms of use in various scenarios.