California DRE Salesperson Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The leased fee refers to the interest that a property owner holds in a leased property. This interest represents the right of the owner to receive rental payments from the tenant who occupies the property, as well as the right to reclaim possession of the property at the end of the lease term.

This concept underscores the dual interests that exist in a leased property: the lessor's (property owner's) interest in the leased fee and the lessee's (tenant's) interest in the leasehold estate. The leased fee is important when considering the value of a property, particularly in commercial real estate transactions, as it can influence investment decisions and financial arrangements.

The other options describe different aspects of real estate but do not accurately define the term "leased fee." The agreement between a landlord and tenant is a lease document outlining the terms of tenancy; the total value of a property encompasses various factors and is not specific to a leased fee; and the market rent pertains to what tenants are willing to pay, which does not define the owner's interest in the property.