California Real Estate Practice Exam

The correct answer is lessees. Less-than-freehold estates refer specifically to interests in real estate that are not ownership in fee simple but rather entail the right to use and occupy the property for a specified period. This characteristic is most commonly associated with lease agreements, where a lessee occupies and uses property owned by another party (the lessor) but does not own the property itself.

Lessees have a significant legal interest in the property during the lease term, allowing them to enjoy certain privileges like habitation and use, in exchange for rent. This arrangement clearly defines a less-than-freehold estate, as the lessee's rights are temporary and limited compared to full ownership.

The other options do not accurately reflect less-than-freehold estates. Beneficiaries of trust deeds own a beneficial interest in a property but are not involved in a leasehold arrangement. Grantees of life estates have a partial ownership interest, as they hold the property for the duration of a person's life, which does not fit the definition of less-than-freehold. Holders of easements have a right to use someone else's property in a specific way, which again does not equate to a leasehold interest in property. Thus, lessees are the appropriate choice