ESTATES Flashcards
estate
When someone holds a possessory interest in real property
freehold estate
it means that the individual with the interest has some degree of ownership for an undetermined or unspecified (and therefore unlimited) period of time.
freehold tenant
The owner of a freehold estate is called a freehold tenant. Depending on the type of freehold estate, the freehold tenant may also have a right of disposition, or right to convey, the interest they own.
There are two basic types of freehold estates:
Fee simple estate
Life estate
fee simple estate
grants the most unlimited, most absolute interest in real property. This means that there are NO conditions on the title. (It is also known as a fee interest or simply fee estate.)
fee simple absolute
An absolute estate is an estate without restrictions that is freely given to heirs (this is the most common type of residential real estate). This is also called a fee title estate.
fee simple defeasible
A defeasible estate (or fee simple defeasible) is an estate characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions. Ownership reverts back to the original owner if these stipulations are violated, but the condition runs with the land. This is also called a qualified fee estate.
There are two types of fee simple defeasible estates: determinable and condition subsequent.
fee simple determinable
A fee simple determinable is a type of fee simple defeasible estate which causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated.
The estate will come to an end automatically and immediately upon the occurrence of a designated event.
The time of that occurrence is uncertain (because the occurrence depends on an action, not a date).
No legal action is required of the grantor in order to assume recovery of this kind of estate.
Pro Tip: An easy way to remember this key term is by focusing on the word “determinable.”
It’s determined that ___ will regain the property if ___ happens.
fee simple condition subsequent
A fee simple condition subsequent estate is the other type of defeasible fee estate. This is the same as a determinable estate in that it comes with specific requirements (or conditions). The difference is that, for ownership to change, the grantor of the estate must prove (in court) that the defeasible fee estate condition has been violated. This MUST happen within a certain time frame.
This change of ownership is NOT automatic, as is the case with a fee simple determinable estate.
Once the court is satisfied with an established condition violation, the grantor can exercise their right of reentry, which is the right to retake possession of the property.
life estate
is the other type of freehold estate. A life estate is so named because it is limited to the duration of a measuring life (this may be the life of the tenant or the recipient of the life estate).
remainder interest
is the interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based (the recipient of the future remainder interest is referred to as the remainderman).
reversionary interest
is the interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original owner (grantor). This may also be referred to as a right of reverter.
conventional life estate
is a life estate in which the measuring life is that of the life tenant; it is an estate created by a deed that lasts for the duration of the tenant’s life.
legal life estate
any life estate created by a function of law
pur autre vie
a life estate in which the measuring life is based on someone other than the life tenant. When the measuring life ends, the estate is returned to the original grantor or passed on to some other designated person according to the provisions of the conventional life estate.
Pur autre vie is a fancy-schmancy French phrase meaning life of anothe
homestead laws
State laws that protect a homeowner from the loss of their principal residence from the claims of most creditors and require both spouses to execute any instruments of conveyance. In other words, they keep a person’s primary residence from being forcibly sold to pay debts or the debts of a deceased spouse. This is also called homestead protection.
