What type of estate is considered an ownership interest in real estate?

A fee simple estate is recognized as the most complete form of ownership interest in real estate. This type of estate grants the holder full and absolute rights to the property; that is, they can use, sell, or bequeath the property without restrictions, subject only to government laws and regulations. Ownership continues indefinitely and can be passed down to heirs after death, providing enduring ownership for the owner and their descendants.

In contrast, a leasehold estate represents a tenant's right to occupy and use a property for a specified duration but does not confer ownership. A life estate, while it provides an interest in the property for the duration of an individual's life, does not offer complete ownership rights because it typically reverts back to the original grantor or their heirs upon the person’s death. A lease agreement involves specific terms between a landlord and tenant and does not imply any ownership interest in the property itself. Therefore, the fee simple estate is the correct answer when discussing ownership interest in real estate.