This legal principle dictates that when one person acquires both the greater and lesser estates in the same piece of property, the lesser estate is absorbed, or merged, into the greater. For example, if a tenant holding a lease later purchases the property in fee simple, the leasehold estate merges into the fee simple ownership, effectively terminating the lease. The separate lease and ownership interests are unified under single ownership.
Historically rooted in feudal land law, this consolidation of interests simplifies property ownership and prevents potential conflicts. It provides clarity by eliminating potentially competing claims arising from separate, overlapping estates in the same property. This streamlined ownership structure benefits both landowners and subsequent purchasers by providing a clearer chain of title and reducing potential legal disputes.
