Estates In Land

Question 1

What is Estate In Land?

Answer 1

Defined as the Degree, Quantity, Nature, and Extent of an owner’s interest in real property

Question 2

In order to be an Estate in Land an interest must be measured by the length of time in possession. T/F?

Answer 2

True. The ownership and enjoyment of the property either now or in the future must be measured by the length of time of possession.

Question 3

What are the 2 types of Freehold Estate?

Answer 3

Fee Simple Estate and Life Estate.

Question 4

What is Freehold Estate?

Answer 4

AKA Fee Simple Estate is the possession of property for an indefinite amount of time and may be passed down to owner’s heirs.

Question 5

What is meant by Interest in Estate?

Answer 5

Interest in real property that amounts to an estate is a measure of the degree to which a thing is owned.

The degree of ownership.

Question 6

What is meant by Estate?

Answer 6

Consists of all the land or property that a person owns or controls.

The actual property or land owned.

Question 7

What are the different ways of ownership of an Estate?

Answer 7

Sole ownership in his/her name, Held in a Partnership, Joint of Ownership Arrangement, or through a Trust.

Question 8

What is Nonfreehold Estate?

Answer 8

An Estate in possession for a definite amount of time.

Question 9

What is Fee Simple Estate?

Answer 9

The highest degree of interest in real estate recognized by law. The Holder is entitled to all rights to the property by law. AKA Fee Simple Absolute, which is a form of Fee Simple Estate.

Question 10

What are the 2 forms of Fee Simple Estate?

Answer 10

Fee Simple Absolute and Fee Simple Defeasible.

Question 11

If the owner of a Fee Simple Absolute dies, what happens to the Estate?

Answer 11

The Interest of the Estate will either:
1. The Decedent’s Co-owner if there is one and if an Survivorship was established

2. Person(s) specified in Owner’s Will
3. If no will, then the person(s) designated by the State’s Law of Intestate Succession

Question 12

When can you not use Fee Simple Estate?

Answer 12

The rights to use fee simple estate is only limited by public and private restrictions, such as Zoning Laws and Restrictive Covenants

Question 13

What are the two Categories of Fee Simple Defeasible?

Answer 13

Fee Simple Determinable and Fee Simple Subject to a Condition Subsequent

Question 14

What are the differences between Fee Simple Determinable and Fee Simple Subject to a Condition Subsequent?

Answer 14

1. Fee Simple Determinable is subject to “Possibility of Reverter.” Meaning, when a limitation is violated, the property is automatically transferred back to the former owner whereas in a Fee Simple Subject To A Condition Subsequent, when the condition is violated, the Estate is NOT automatically reverted back to the former owner. The Former owner is required to take legal court action to retrieve back the property.

Question 15

What is a Life Estate?

Answer 15

A Life Estate is an estate that is measured by the lifetime of either the holder of the estate or to an identified person or persons.

Question 16

Is a Life Estate Inheritable?

Answer 16

No. Although a Life Estate is not inheritable, it is set to be owned by the future owner according to the provisions that the life estate was created.

Question 17

The Holder of a Life Estate is called?

Answer 17

Life Tenant.

Question 18

Is the Life Tenant like a renter to the life estate?

Answer 18

No, a life tenant is entitled to the rights of ownership and can benefit from both possession and ordinary use, and profits arising from ownership, just as if the individual were a fee simple owner.

Question 19

Can a Life Tenant’s ownership be sold?

Answer 19

Yes, the ownership of the life tenant may be sold, mortgaged, or leased, but it is ALWAYS subject to the lifetime of a life estate.

Question 20

A Life Estate can also be based on the lifetime of a person other than the life tenant. T/F?

Answer 20

True, although a life estate is not inheritable, a life estate pur autre vie provides for inheritance of the property right by the life tenant’s heirs, but the right exists only until the death of the identified person or persons.

Question 21

Why is a Life estate pur autre vie created?

Answer 21

Usually created because the life tenant is mentally or physically incapacitated and it provides incentive for a person to care for them.

Question 22

Can there be more than one person measuring the life estate?

Answer 22

Yes, more than one person could be identified as the measuring life.

Ex. A deceased property owner can grant life estate to a surviving brother for the life duration of the surviving brother’s children . Meaning as long as the one of the children survives, the life estate is in control of the surviving brother.

Question 23

Ex. of Pur Autre Vie. See Back.

Answer 23

If, “A” is given property for “B” life, “A” is the tenant pur autre vie and will hold the property during the lifetime of “B.” If “A” dies before “B,” then the person entitled under “A’” will or on his intestacy will take interest for the remainder of “B’s” life. But if “B” dies before “A,” then the interest of “A” thereupon terminates.

Question 24

What is Estate?

Answer 24

An Estate is the right or interest to real property that allows or will allow the possession of the property.

When you own or lease a land or that is your Estate

Question 25

Who is the Pur Autre Vie?

Answer 25

The person granted Possession of ownership by the Life Tenant or Owner of the Estate, but only for the lifetime of the Life Tenant.

Question 26

How is the Future owner of the Fee Simple Estate determined?

Answer 26

1. Remainder Interest - The Remainderman, if delegated by the creator of the life estate, is given the estate once the Life Estate ends
   Ex. The owner of the Fee Simple Estate “A” creates a Life Estate and gives it to “B” for the lifetime of “B.”
2. Revisionary Interest is when the Life Estate reverts back to the Creator of the Life Estate after the Life Estate ends

Question 27

What are the key words in determining a Fee Simple Determinable Estate?

Answer 27

“So long as,” “While,” “During”

Question 28

What are the differences between a Fee Simple Determinable and a Fee Simple Subject To A Condition Subsequent?

Answer 28

A Fee Simple Defeasible may be inheritable and has possibility of reverter, while a Condition to Subsequent does not.

Question 29

What key words dictate a Fee Simple Subject to a Condition Subsequent?

Answer 29

“On the Condition of”

Question 30

Both Fee Simple Subsequent and Fee Simple Determinable are known as?

Answer 30

Future Interest

Question 31

What are the two types of Fee Simple Defeasible?

Answer 31

Fee Simple Subject to a Condition Subsequent and Fee Simple Determinable

Question 32

What is Fee Simple Defeasible?

Answer 32

An Estate that is subject to the occurrence or non occurrence of some specified event

Question 33

A Fee Simple Determinable cannot be inherited. T/F?

Answer 33

False

Question 34

Why are Fee Simple Determinable and Fee Simple Subsequent considered Future Interest?

Answer 34

Because both types of Fee Simple Defeasible may never take affect. Meaning Possibility of Reverter and Right of Entry may never happen

Question 35

What does Right to Entry apply to?

Answer 35

When a Fee Simple Subject to a Condition Subsequent is violated, the Former owner may reclaim property, but only through legal court action

Question 36

Life Estate is a type of what?

Answer 36

Freehold Estate

Question 37

What types of Estates are noninheritable?

Answer 37

Fee Subject to Subsequent and Life Estate

Question 38

Why is a Life Estate a type if Freehold Estate?

Answer 38

A Freehold Estate has an indefinite duration that may last a lifetime or forever

Question 39

What are the three types of Freehold Estates?

Answer 39

Fee Simple Absolute, Fee Simple Defeasible and Life Estate

Question 40

What is Possibility of Reverter?

Answer 40

When a Fee Simple Determinable is violated, the former owner will automatically reacquire the property without court or legal action

Question 41

Is a Life Estate Inheritable?

Answer 41

No, Life Estates are passed on to the person or persons specified in the Life Estate