Chaper I Flashcards
Types of modern day estates in real property
- Fee simple or fee simple absolute
- Fee simple determinable
- Fee simple on condition subsequent
- Life estate
- Estate for years
- Estate at will
Fee simple/ fee simple absolute
Infinite duration
No restrictions on use
Maximum legal ownership
Most sellable
Fee simple determinable
Infinite duration
Subject to a condition
- Condition is transferred if property is purchased
- Reduces value of property
“So long as”
Ownership automatically expires on the happening or not happening of an event that is stated in the deed
Creates a future interest
Fee simple on condition subsequent
Indefinite duration
Subject to a condition
“On the express condition that…”
A breach of the condition does not cause an automatic termination of the estate
Allows owner to have control of property after being sold or after death
creates a future interest
Life estate
Ownership interest limited to a life/lives
Waste
- Living in such a way that causes the property to lose values
- Terminates ownership
creates a future interest
types of future interests
- Reverter/ reversions
2. Remainder
reverter/ reversions
A –> B and on the death of B the property is returned to A.
Remainder
A –> B and on the death of B, ownership of the property goes to C.
estate for years
Property is owned for a fixed number of years.
Able to sell property but only for the fixed number of years that you own it for.
Estate at Will
Indefinite period
Similar to leasing property but tenant technically own it
Somewhat similar to a month to month lease
Terminated at the will of the parties
You are continually paying the owner of the property so contract is not terminated
Useful if you are considering selling the property
Useful if an estate for years term runs out and the tenant still want to live in the property
