Freehold Estates Flashcards
Bundle of rights
Allows owner to process, enjoy, control, exclude, and dispose of the property.
Freehold estates
Non-freehold estates
Free- exist unknown time
Non- based on calendar time
Fee simple absolute
Highest form of ownership
For indefinite time, transferable, and inheritable
Fee simple defeasible estates
Special limitation
Condition subsequent
Special limitation
Possibility of reverter- possible future interest the grantor heirs have.
Granted as ownership as long as property used for that purpose, if not goes back to heirs!
Condition subsequent
Right of reentry- possibly future interest of the grantor
Action or condition grantee can’t perform.
Binding on future owners
Life estate based on 3rd party.
Life estate pur autre via
Dower, curtesy and homestead r ?
Legal life estates
D- wife’s interest in real este owned by husband.
C- husbands interest
H- protects owner from certain creditors
Severalty
Title of real estate held by one party.
Individual, corporation, or government body
100% ownership
3 forms of ownership in real estate
Severalty
Tenancy in common
Joint tenancy
Tenancy in Common
2 or more people
Co-owners ea. have own title as sole owner
Interest may be unequal
Can inherit
Unity of possession
Joint Tenancy
Concurrent right of survivorship
1 title
Share must be equal
Pass to surviving owners
Ea. tenant right to sell
Life tenant
Full enjoyment while alive
Can’t let go to waste
Lease deed becomes void on death of them
Trust
Manages property for owner.
Trustor,
Trustee,
And beneficiary
To make a condo.
Must record declaration of condo.
Master deed allows land to be converted
Bylaws govern it
Party purchasing residential condo owns?
Air space on a unit (severalty),
Land and buildings (tenant in common)
Must pay homeowners fee,
Maintenance, insurance, reserve funds
Or can be foreclosed on
Cooperative
Form of co-ownership in which a corporation holds the title and owners purchase shares of stock in the corp. and receive proprietary lease (grants occupancy of specific unit in building).
If owner defaults, other shareholders are expected to pay
Conversion
Changing one from of ownership to another such as;
Apartment building to condominium
Life estates
1) Ordinary with remainder or reversion
- set up by grantor
2) pur autre via w/ remainder and reversion
- set up by grantor based on 3rd person
3) legal life estates
- (set up by law)
Remainder man
When owner gives life estate to one party and the remainder to another
Right of reversion
The part of an estate that the grantor holds after they gave a life estate to another person.
The estate will return to them
