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In terms of ownership and right of use, the tenures Freehold, Stata Title, Leasehold and Sub-Leasehold commonly apply in Asia and apply to businesses, commercial real estate and residential real estate.

Typically in residential real estate, these will be advertised as 'for sale' (freehold and strata title) or 'for rent' (leasehold or sub leasehold). Sometimes you may see them advertised as 'for sale or rent', simply meaning that a property is being offered either for sale or for rent. If it is sold first, it is no longer available for rent, and if it is rented first, then it may not necessarily be available for sale. These terms apply to the ownership and right of use of land and property and can be used to offer a business for sale too.

There is one more used for business sales which applies to the ownership of an asset (not real property). Such assets may be distribution rights, intellectual property, a company structure, a website or online store, a commercial fishing boat, vending machines, etc. So, in terms of tenure, for businesses (because we tend to refer to assets as a tenure - although technically speaking they are not), we have:

• Freehold
• Strata Title
• Leasehold
• Sub Leasehold
• Assets

And, in addition to advertising businesses as 'for sale', 'for rent', and 'for sale or rent' (as discussed above), we also have one more category called 'for sale and rent'. Unlike for sale or rent, for sale and rent means the business is for sale and the premises the business is conducted from is for rent.

The following explains the different business tenures:

• Freehold. Freehold tenure is where the land and any improvements upon it are owned outright. When buying or selling businesses operated from a freehold property, you should be aware that there are two components to the value - the value of the property itself (valued in much the same way as a house would be valued) and the value of the business.
• Strata Title. Strata Title is a form of freehold ownership in that a portion of the property is owned outright. In many Asian countries ownership only relates to a level or levels of a building and does not include the ground level. It is sometimes called 'Condo Title' and it may be easier to understand when you think of it in this way. In other countries though, like Australia, it can include the ground level and is quite popular with businesses like caravan parks, serviced apartments and retirement villages, along with commercial, retail and mixed-use premises, and even vineyards.
• Leasehold. A leasehold tenure is very simply renting land and any improvements upon it (usually a building) - for example renting a shop. The lease or rental is direct with the freehold owner of the land who becomes known as the Landlord. You pay rent to the Landlord in exchange for the right to use the property in accordance with conditions agreed upon in a Lease Agreement (or Rental Agreement). Some people refer to leasehold tenures as 'direct lease' or 'master lease' meaning they are leasing directly from the owner.
• Sub Lease. Very much the same as leasehold except instead of renting directly with the owner of the land, you are leasing from the lease holder of the land (the Lessee). It is very important with this type of lease, to ensure the Lessee has a valid Lease Agreement with the owner and the Lease Agreement allows the Lessee to sub lease, and the period of the sub lease tenure does not exceed the period of tenure the Lessee has with the owner.
• Assets. Although not technically a tenure, it is where a business that does not include property is sold or owned. Examples are a website or online store.