Ch. 3 - Interests and Estates Flashcards
What are the 5 rights included in the bundle of rights in an ownership interest of real estate?
1) possess
2) use
3) transfer
4) encumber
5) exclude
What is an undivided interest?
hint: an owner’s interest in a property in which ___ __ ___ _____ ____ _____
An owner’s interest in a property in which 2 or more parties share ownership
Is an undivided or indivisible interest a fractional part of the entire estate or a physical portion of the real property itself?
A fractional part of the entire estate (not a physical portion of the real property itself)
If an interest-holder enjoys the right of possession, the party is considered to have an _____ __ _____.
If a private interest-holder does not have the right to possess, the interest is an _____. If the interest-holder is not private, such as a gov’t entity, and does not have the right to possess, the interest is some form of _____ _____.
Estate in land (or estate)
Encumbrance; Public interest
Tax liens, mortgages, easements, and encroachments are examples of what?
An encumbrance (enables a non-owning party to restrict the owner’s bundle of rights)
Police power, or the right of the local or county gov’t to zone, and eminent domain are examples of what?
Public interest (zoning is a non-possessory interest; eminent domain is a way to acquire ownership)
Is an estate in land (which includes the right to possession) a freehold or leasehold estate?
It could be either
In a _____ _____ the duration of the owner’s rights cannot be determined (they may endure for a lifetime, less than a lifetime, or for generations beyond the owner’s lifetime)
A _____ _____ is distinguished by its specific duration, as represented by the lease term.
Freehold estate
Leasehold estate
Both freehold estates and leasehold estates are referred to as what?
Tenancies (the owner of a freehold estate is the freehold tenant and the renter, or lessee, is the leasehold tenant)
A freehold estate of potentially unlimited duration is called what?
An estate limited to the life of the owner is called what?
A fee simple estate
A life estate
What is the highest form of ownership interest?
The fee simple freehold estate (it includes the complete bundle of rights and the tenancy is unlimited, with certain exceptions)
What are the 2 forms of fee simple estate?
Absolute and defeasible
What is a perpetual estate that is not conditioned by stipulated or restricted uses called?
How does it pass?
Fee simple absolute (most desirable and most common)
Freely to heirs
What is the estate that is perpetual, provided the usage confirms to stated conditions called?
Fee simple defeasible
(the property must be used for a certain purpose or under certain conditions, and if the use changes or if prohibited conditions are present the estate reverts to the previous grantor of the estate)
What are the 2 types of fee simple defeasible?
1) determinable
2) condition subsequent
The deed to what type of estate states usage limitations, where if the restrictions are violated, the estate automatically reverts to the grantor or heirs?
(hint: it’s a type of fee simple defeasible estate)
Determinable
What type of estate is it where if any condition is violated, the previous owner may repossess the property, but reversion is not automatic: the grantor must re-take physical possession within a certain time frame?
(hint: it’s a type of fee simple defeasible)
Condition subsequent
What is the name of a Freehold Estate that is limited in duration to the life of the owner or other named person?
Life Estate
In a Life Estate, what happens to the estate upon death of the owner or other named person?
It passes to the original owner or another named party.
What is the holder of a Life Estate called?
A life tenant.
Does the owner of a Life Estate enjoy full ownership rights during the estate period?
Yes
What do the holders of a future interest in a Life Estate own?
(Hint: either a _____ or _____ interest)
Either a reversionary or remainder interest.
What are the 2 ways a Life Estate can be created?
1) by agreement between private parties
2) by law under prescribed circumstances
What is the interest called when a Life Estate names a 3rd party to receive title to the property upon termination of the life estate?
(Hint: _____ _____ or (same) _____)
Remainder interest or Remainder estate
What is the holder of a Remainder interest or Remainder estate in a Life Estate called?
A Remainderman.
What is the interest in a Life Estate called where no remainder estate is established and the estate reverts to the original owner or his heirs?
(Hint: a _____ _____ or _____)
A reversionary interest or estate.
What are the 2 types of Life Estates called?
1) Conventional life estate
2) Legal life estate
Begin with life estates at the top of p. 34
Finished p. 33
