TN 34 (01-93)

A. Introduction

An individual may have certain rights with respect to property without also having the right to dispose of the property. However, the individual may have the right to sell his/her right or interest, i.e., the right to use or possess the property.

B. Definitions

1. Leasehold

A leasehold does not designate rights of ownership. Rather, it conveys to an individual use and possession of property for a definite term and usually for an agreed rent. However, under common law, a lease could create a life estate. Due to the complexity of these arrangements, leasehold documents should be forwarded to the RO for legal review.

2. Incorporeal Interests

There are several types of real property rights called “incorporeal interests.” They do not convey ownership of the physical property itself. They convey the right to use property but not to possess it. These rights encompass mineral and timber rights and easements (explained in more detail at SI 01140.110).