Chapter 4: Freehold estates Flashcards
what is a freehold estate?
Type of legal estate - fee simple in absolute possession
The closest possible form of absolute possession
when would a freehold revert back to the crown?
the owner dies intestate with no family to inherit
What is a fee simple in absolute possession?
fee simple: right to use and enjoy the land for their lifetime (free to do any type of transfer)
absolute: ownership of the land has no conditions, will not end due to an event
in possession: entitled to take immediate possession (occupy/ enjoy the land)
what happens if all elements of fee simple in absolute possession are not met?
not create a legal freehold
equitable interest only
what is a life estate?
right to use/ occupy property during a lifetime.
only equitable interest
What is a fee simple in absolute remainder?
equitable interest
(future interest) a right to a specific person to own or possess the land once the fixed term interest of the current owner expires (or dies)
chosen by the estate owner
what is a fee simple in absolute reversion?
the right of the original estate owner to own or repossess the land once the fixed term interest they have granted to a third party has expired (or died)
(death of a life tenant)
when will a life interest usually end?
On death of the life tenant
what is a life tenant?
someone with right to use or occupy the property for their life
what CAN a life tenant do with their property interest?
- rent to third party (original terms of the life estate would still apply.
- sell/ transfer (with permission of grantor)
what can a life tenant NOT do with their property?
Cannot leave the life estate in their will UNLESS they are predeceased by the absolute estate owner
what happens if there is no agreement between the parties about what happens if the person with a life interest dies?
fee simple in absolute revision - interest automatically reverts back to original owner
what is a determinable fee simple?
Automatically ends ownership of the free hold legal estate if a specific but unpredictable event occurs
NOT death
ownership back to original owner
what is a conditional fee simple?
Requires a condition to be met throughout ownership
break condition = right to ownership void
not automatic - up to original owner to decide
how can a freehold estate be transferred?
by deed and registered
if the formalities of a deed are not carried out = equitable interest only
what is the effect on the freehold if the leasehold is granted?
no effect
land can be both at the same time
freehold estate will continue (last forever)
what rights does a leasehold owner have during the lease period?
dispose, transfer, sublet any dealings in the land
can be limited in the lease deed
what is the difference between a freehold and lease hold
freehold - last forever (no end)
leasehold - specific amount of time / fixed term
Can a freehold owner who has granted a lease occupy the property?
not during terms of lease
must wait until the lease expires unless there is a breach
what happens when a lease comes to an end?
freehold owner can now posses/ grant a new lease.
