Freehold vs. Leasehold Estate Terminology Flashcards
Freehold Estate
home ownership for an undetermined length of time
Leasehold Estate
provides an interest in real estate for a limited time
Fee Simple
an inheritable freehold estate. Refers to a form of ownership, not tenancy, so the owner of a fee simple estate can will the property and/or successor can inherit the property. Provides most complete form of ownership and includes the bundle of rights
Fee Simple Defeasible
one that permits the recovery of fee simple ownership if certain conditions aren’t met
Defeasible
the grantor (seller) has placed a limitation on the deed
Fee Simple Determinable
type of fee simple defeasible estate, and an inheritable freehold estate, where the title remains with the new owner as long as the conditions of ownership are being met
Fee on Condition
another type of fee simple defeasible estate that is also an inheritable defeasible freehold estate, it is recognized by the words “but if” in the deed. Estate continues unless a specific event occurs, in which case ownership may revert to the owner or the owner’s successors
Life Estate
an estate that includes ownership, possession and control for someone’s lifetime
Act of Waste
abuse of a property by a person who holds interest through a life estate
Remainderman
named by the owner when forming the estate receives title to the property upon the death of the life tenant
Remainder Interests
remainder man’s right to fee simple title upon the death of the life tenant
Reversionary Interest
a life estate in which property title reverts to the owner upon the death of the life tenant
Pur Autrie Vie
life estate is created by a property owner who grants an estate to someone for the duration of another individual’s life
Estate for years
an estate for a specified period of time e.g. a one-year lease
Periodic Estate
one that renews itself automatically at the end of each lease period unless on elf the parties to the lease terminate it
