There are a number of ways to explain how the property system in a virtual world works. Various explanations are proposed in this paper to explain this phenomenon. Some people argue that property in virtual worlds is purely based on contract and as such can be explained as merely licensing players to use the virtual worlds. Other explanations include the arguments that virtual property is based purely on intellectual property, actual (real) property or even does not exist at all. However, one alternative to accepting that virtual property is actual property, is by viewing the property relationship as a system as feudal ownership or estates. This model of explaining virtual property manages to incorporate many, if not all of the current expl...