Q:

What does freehold mean when buying a house?

A:

Quick Answer

Freehold or freehold estate is a legal concept that identifies the bundle of rights and responsibilities that come with a piece of land or buildings. Having a freehold estate in property generally indicates that a person or entity owns and has a present right to possess the property.

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Full Answer

In contrast, a nonfreehold estate in property generally indicates a mere right of possession, and that another person or entity owns the property. If a person purchases a home, he takes a freehold interest in the property. If a person rents a home from another owner, he takes a nonfreehold interest. The holder of the freehold interest is responsible for upkeep on the property, as well as paying property taxes and maintaining insurance.

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