3:5 - Types of Real Estate Ownership Flashcards
Freehold Estate
Home ownership for an undetermined length of time
Leasehold Estate
An interest in real estate for a limited time
Fee Simple (Fee Simple Absolute)
An inheritable freehold estate
True or False: The owner of a fee simple estate can will the property and/or successor can inherit the property
True
What is the most complete form of ownership and includes the bundle of rights?
Fee simple absolute
Fee Simple Defeasible Estate (Qualified Fee Estate)
Permits the recovery of fee simple ownership if certain conditions aren’t met
Defeasible
Defeasible means that the grantor (seller) has placed a limitation on the deed
Fee Simple Determinable Estate
Type of fee simple defeasible estate, and an inheritable freehold estate, where the title remains with the new owner as long as the conditions of ownership are being met
This is an example of which estate: For example, Marge sells her farm to a local church so long as the church uses the property only for religious purposes
Fee Simple Determinable Estate
Which estate is this: If the buyer commits a specific prohibited act, title to the property may automatically be returned to the owner or the owner’s successors.
Fee Simple Determinable Estate
Fee on Condition (aka fee simple subject to a condition subsequent)
Type of fee simple defeasible estate that is also an inheritable, defeasible freehold estate, but it is recognized by the words “but if” in the deed.Such termination and recovery of ownership must be achieved through a court order.
This is an example of which estate: Gene deeds his property to his son on the condition that his son will not convert the farm to a marijuana operation.
Fee on Condition (aka fee simple subject to a condition subsequent)
