Estates Flashcards
An estate
is a possessory right or ownership interest in real property.
A person has an estate when they have a possessory right or ownership interest in real estate.
Freehold estates
are estates that last indefinitely for one or more lifetimes or in perpetuity. These estates involve ownership of the property. They are considered real property interests. They include fee simple, life, reversion, and remainder
Nonfreehold estates
are estates that last for a lesser and temporary period of tim These estates involve the lease or rental of real estate. They include an estate for years, periodic estate, estate at will, and estate at sufferance.
fee simple estate
Unless a deed or will specifically indicates a different type of estate, it is presumed that the owner has a fee estate.
A fee estate is the maximum estate and the greatest interest that a person may hold in land. This is because it is of indefinite and unlimited duration, the most freely transferable and inheritable estate.
A qualified fee estate (also called a conditional fee, a defeasible fee, or fee simple defeasible estate)
is an estate of potentially unlimited duration and does not terminate upon the death of the owner. The estate, however, has certain qualifications (conditions).
The term defeasible is used to indicate that, if the event specified in the conditions were to occur, the estate would or could be defeated.
life estates
A life estate is a freehold estate, because it is an ownership estate.
However, it is not a fee estate, because it is not inheritable.
A life estate may be measured by the life of the holder of the life estate (the life tenant).
Reversion
is the right to future possession by the grantor creating the life estate. Reversion means the land will return to the grantor of the estate.
Nonfreehold estates (also called less-than-freehold estates, leasehold estates, or chattels real)
are limited in duration and are considered to be personal property interests.
These estates may be created by a lease.
lease
- a conveyance of a leasehold estate in land to the lessee
- an agreement to occupy property for a specified period
- any document or instrument that transfers possession and use of real property for specific consideration, but that does not transfer ownership
Demise
refers to an estate that will end.
In any lease, transaction at least two estates will exist.
The lessor will keep a freehold estate (or leased fee) in the property while giving the lessee a leasehold estate. This gives the lessor a reversionary interest in the property during the term of the leasehold, as they have the right to retake possession of the property when the lease expires.
In addition, he has the right to receive rent while the leasehold exists.
leasehold estate is
- inheritable (so they can will it or leave it to their heirs)
- transferable by sale or assignment (so they can sell or assign it)
- of certain duration, as it is either limited in time or by the desire of the parties
Four Types of Leasehold Estates
- Estate for Years (for a fixed period)
- Periodic Estate (from period to period)
- Estate at Will
- Estate at Sufferance
estate for years
This estate is a tenancy of definite duration.
It may run for any length of time (e.g., a day, a week, a month, a year, or any number of days, weeks, months or years).
The distinguishing feature of an estate for years is that it is for a definite and fixed period of time. It has a fixed and definite termination date that can be established clearly at the beginning of the tenancy.
Unless the lease provides otherwise, an estate for years will not terminate on the death of either the lessor or the lessee. If either person dies, their rights and obligations pass to their heirs. If the lessor sells the property, the new owner must continue to honor the lease.
If a lease contains a termination date, no advance notice of termination is needed to terminate it. The lease automatically would terminate on the stated expiration date.
Generally, an estate for years is referred to as a lease, whereas any other tenancy may be referred to as a rental agreement.
A periodic estate or (periodic tenancy)
is a tenancy that automatically renews itself on the last day of the term for another term of the same duration until it is terminated by either party with proper notice. It does not have a fixed termination date, as it automatically renews at the end of each term.
estate at will or (tenancy at will)
the tenant is in possession at the will of the owner. An estate at will is created when a person enters into possession of real estate with the consent of the owner and without the intention of creating a freehold interest.
It is a leasehold estate that continues for an indefinite period of time, so long as both parties consent. There is no fixed period, and there are not even any renewal periods.
