Chapter 3 - Interests and Estates Flashcards
An interest in real estate that does not include the right to possess is considered
An encumbrance
An estate for period-to-period will continue as long as
The tenant makes and landlord accepts, regular rent payments
The distinguishing feature of a leasehold estate is
duration limited by a lease term
What distinguishes a freehold estate from a leasehold estate?
A leasehold endured only for a specific period of time
A widow who was excluded from a will makes a claim to a portion of the couple’s principal residence - is an example of?
The legal concept of elective share
To convey clear title in a dower and curtesy state..
both spouses must sign the conveyance
Dower refers to
A wife’s life estate interest in her husbands property
The owner of a freehold estate is known as
a freehold tenant
An interest in real estate is
ownership of any combination of the bundle of rights to real property
Including rights to possess, use, transfer, encumber, exclude
Undivided interest
an owner’s interest in a property in which 2 or more parties share ownership
Interests are principally distinguished by
whether they include possession
estate in land
interest’holder enjoys the right of possession
The prime example of public interest is
police power, or the right to of the local or county government to zone
Freehold estate
the duration of the owner’s rights cannot be determined. The rights may endure for a lifetime, for less than a lifetime, or for genreations
Leasehold estate
is distinguished by its specific duration (lease term)
Both leasehold and freehold estates are referred to as
tenancies
The renter or lessee is the
leasehold tenant
____ differ primarily according to the duration of the estate and what happens to the estate when the owner dies
freehold estate
Fee simple freehold estate
is the highest form of ownership interest one can acquire in real estate
Fee simple freehold estates include
the complete bundle of rights, and the tenancy is unllimited
The owner of the fee simple interest is called the
fee tenant
Two forms of fee simple estate
absolute and defeasible
Fee simple absolute
is a perpetual estate that is not conditioned by stipulated or restricted uses
Fee simple defeasible
is perpetual, provided the usage conforms to stated conditions
Fee simple defeasible conditions
the property must be used for a certain purpose or under certain conditions
if the use changes or if prohibited condition are present, the estate reverts to the previous grantor of the estate
Two types of fee simple defeasible are
determinable and condition subsequent
Fee simple defeasible - determinable
the deed to the determinable estate states usage limitations
Fee simple defeasible - condition subsequent
if any condition is violated, the previous owner may repossess the property
However, reversion of the estate is not automatic: the grantor must re-take physical possession withing a certain time frame
Life estate
a life estate is a freehold estate that is limited in duration to the life of the owner or other named persons
The holder of a life estate is called
the life tenant
The distinguishing characteristics of the life estate are…
the owner enjoys full ownership rights during the estate period
holders of the future interest own either a revisionary or a remainder interest
the estate may be created by agreement between private parties, or it may be created by law under prescribed circumstances
If the life estate names a third party to receive title to the property upon termination of the life estate..
the party enjoys a future interest called a remainder interest or a remainder estate
The holder of a remainder interest is called
a remainderman
Reversion
if no remainder estate is established, the estate reverts to the original owner or the owner’s heirs
Two types of life estates
conventional and legal
Conventional life estate
is created by grant from a fee simple property owner to the grantee, the life tenant
Two types of conventional life estate
ordinary and pur autre vie
Ordinary life estate
an ordinary life estate ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named their party (remainder)
Pur autre vie
a pur autre view life estate endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman)
Legal life estate
is created by state law as opposed to being created by a property owner’s agreement
the focus is defining and protecting the property rights of surviving family members upon the death of the husband or wife
Three major forms of legal life estate
homestead, dower and curtesy, and elective share
Homestead
one’s principal residence, homestead laws protect family members against losing their homes to general creditors attempting to collect on debts
Homestead laws generally provide that
all or portions of one’s homestead are exempt from a forced sale executed for the collection of general debts
tax debts, seller financing debt, debts for home improvement are not exempt
the family must occupy the homestead
the homestead interest cannot be conveyed by one spouse
homestead exemption and restrictions endure over the life of the head of the house hold and pass on to children under legal age
homestead interest in a property are extinguished if property is sold or abandoned
Dower and curtesy
have been largely supplanted by community property laws and elective share laws
Estate for years
is a leasehold estate for a definite period of time, with a beginning date and an ending date
Most common form of periodic tenancy
month to month lease
Estate at will
also called tenancy at will, has no definite expiration date and no renewal cycle
Estate at sufferance
a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord
Accretion
the natural deposit of soil by water, becomes the property of the riparian or littoral owner
