Estates in Real Property

Question 1

Interest

Answer 1

A right to real property.

An interest in real estate is ownership of any combination of the bundle of rights to real property, including the rights to: possess, use,transfer,encumber,exclude

Question 2

Undivided Interest

Answer 2

An undivided interest is an owner’s interest in a property in which two or more parties share ownership. The terms “undivided” and “indivisible” signify that the owner’s interest is in a fractional part of the entire estate, not in a physical portion of the real property itself. If two co-owners have an undivided equal interest, one owner may not lay claim to the northern half of the property for his or her exclusive use.

Question 3

Estate in Land

Answer 3

If the interest-holder enjoys the right of possession, the party is considered to have an estate in land, or, familiarly an estate.

An estate in land is an interest that includes the right of possession

An estate is a freehold or a leasehold

Question 4

Encumbrance

Answer 4

An interest, right or intrusion that limits the freehold interest of an owner of real property or otherwise adversely effects the marketability of title

If a private interest-holder does not have the right to possess, the interest is an encumbrance

Question 5

Police Power

Answer 5

A state’s or local government’s legal authority to create, regulate, tax, and condemn real property in the interest of the public’s health, safety, and welfare

Public entities may own or lease real estate, in which case they enjoy an estate in land. However, government entities also have non-possessory interests in real estate which act to control land use for the public good within the entity’s jurisdiction. The prime example of public interest is police power, or the right of the local or county government to zone.

Question 6

Freehold

Answer 6

An ownership estate of indeterminable duration; contrasts with a leasehold estate.

In a 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 generations beyond the owner’s lifetime.

Ownership of a freehold estate in commonly equated with ownership of the property.

Question 7

Leasehold

Answer 7

An estate that entails temporary rights of use, possession, and to an extent, exclusion, but not legal ownership

A leasehold estate is distinguished by its specific duration, as represented by the lease term

Ownership of a leasehold estate is not so considered because the leaseholder’s rights are temporary

Question 8

Tenancy

Answer 8

A freehold or leasehold estate held by a tenant

Both leasehold and freehold are referred to as tenancies. The owner of the freehold estate is the freehold tenant, and the renter, or lessee, is the leasehold tenant

Question 9

Fee Simple

Answer 9

The fee simple freehold estate is the highest form of ownership interest one can acquire in real estate. It includes the complete bundle of rights, and the tenancy is unlimited, with certain exceptions indicated below. The fee simple interest is also called the “fee interest,” or simple, “the fee.” The owner of the fee simple interest is called the fee tenant.

Fee simple estates, like all estates, remain subject to government restrictions and private interests

Question 10

Life Estate

Answer 10

A life estate is a freehold estate that is limited in duration to the life of the owner or other named person. Upon the death of the owner or other named individual, the estate passes to the original owner or another named party. The holder of the 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 reversionary or a remainder interest
• the estate may be created by agreement between private parties, or it may be created by law under prescribed circumstances

Question 11

Reversion

Answer 11

A transfer of title from a life estate tenant back to the grantor.

If no remainder estate is established, the estate reverts to the original owner or the owner’s heirs. In this situation, the original retains a reversionary interest or estate

Question 12

Remainder

Answer 12

A future freehold interest in a life estate held by a third party remainder man named by the grantor. When the life tenant dies, the estate passes to the remainder man

If a 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

Question 13

Homestead

Answer 13

A homestead is one’s principle residence. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts

Question 14

Dower

Answer 14

A widow’s life estate interest in portions of her deceased spouse’s real property.

Dower is a wife’s life estate interest in the husband’s property. When the husband dies, the wife can make a claim to portion of the dependents property

Property acquired under dower laws is owned by the surviving spouse for the duration of his or her lifetime

Question 15

Curtesy

Answer 15

A widower’s life estate claim to portions of his deceased spouse’s real property

Curtesy is the identical right of dower enjoyed by the husband in a deceased wife’s property. Property acquired under dower laws is owned by the surviving spouse for the duration of his or her lifetime

Question 16

Elective Share

Answer 16

A right of a surviving spouse to claim a prescribed portion of the dependent’s real and personal property in place of the provisions of the dependents will.

Elective share is a state-level statue enabling a surviving spouse to make a minimum claim to the deceased spouse’s real and personal property in place of the provisions for such a property In the dependents will

For example, if a husband’s will excludes the wife from any property inheritance, the wife may, upon the husband’s death make the elective share claim

Question 17

Estate for Years

Answer 17

The estate for years is a leasehold estate for a definite period of time, with a beginning date and an ending date. The estate for years may endure for any length of term. At the end of the term, the estate automatically terminates, without any requirement of notice

For example, a landlord grants a tenant a three-year lease. After the three years, the leasehold terminates, and the landlord may re-possess the premises, renew the lease, or lease to someone else

Question 18

Estate from Period to Period

Answer 18

In an estate from period-to-period, also called a periodic tenancy, the tenancy period automatically renews for an indefinite period of time, subject to timely payments of rent. At the end of a tenancy period, if the landlord accepts another regular payment of rent, the leasehold is considered to be renewed for another period.

For example, a two-year lease expires, and the landlord grants a six-month lease that is automatically renewable, provided the monthly rent is received on time. At the end of the six months, the tenant pays, and the landlord accepts another monthly rent payment. The acceptance of the rent automatically extends the leasehold for another six months.

The most common for of periodic tenancy is the month-to-month lease, which may exist without any written agreement

Question 19

Estate at Will

Answer 19

The estate at will, also call a tenancy at will, has no definite expiration date and hence no “renewal” cycle. The landlord and tenant agree that the tenancy will have no specified termination date, provided rent is paid on time and other lease conditions are met.

For example, a son leases a house to his father and mother “father,” or until they want to move

The estate at will is terminated by proper notice, or by the death of either party

Question 20

Estate at Sufferance

Answer 20

In an estate at sufferance, a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord. Usually such an estate involves a tenant who fails to vacate at the expiration of the lease, continuing occupancy without any right to do so.

For example, a tenant violates the provisions of a lease is evicted. The tenant protests and refuses to leave despite the eviction order