Interest Ans Estates Flashcards
Bundle of rights
Rights to possess, use, transfer, encumber, exclude
Undivided interest
And owners interest in a property in which two or more parties share ownership the term undivided and indivisible signify that the owners interest is in a fractional part of the interstate not in a physical portion of the real property itself
Examples of interest include
An owner who enjoys the complete bundle of rights
A tenant who temporarily enjoys the right to use and exclude
A lender who enjoys the right to encumber the property over the life of a mortgage loan
A repairman who encumbered the property when the owner fails to pay for services
A buyer who prevents an owner from selling the property to another party under the terms of the sale contract
A mining company which temporarily owns the right to extract medals for the property subsurface
Or utility company which claims access to the property in accordance with an easement
A local municipality which has the right to control how an owner uses the property
Encumbrance
Enables a non-owning party to restrict the owners bundle of rights example tax liens mortgages easements and encroachments
Public interest
Police power or the right of the local or county government to zone. Example is right to acquire ownership through the power of eminent domain
Eastate in land
And interest that includes the right of possession interstate is a freehold or leasehold estate
Freehold estate
The duration of the owners rights cannot be determined the right may endure for a lifetime for less than a lifetime or generations beyond the owners life
Leasehold estate
Is distinguished by its specific duration as representative by the lease term
Tenancies
Leasehold in freehold estates are also referred to as Tenacies. The owner of a Freehold tenant and the renter or leasee is the leasehold tenant
Fee simple estate
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 except they are subject to government restrictions and private interest
Two forms of fee simple are absolute and defensible
Absolute or fee simple absolute
The fee simple absolute estate is a perpetual state that is not conditioned by stipulated or restricted uses it may be passed on to Heirs. Most desired estate, most common mostly obtained in Residential real estate
Fee simple defensible
The defensible fee estate is perpetual provided the usage conforms to state conditions. Characteristics are:
The property must be used for certain purposes or conditions
If the used changes or if prohibited conditions are present the estate reverts back to the previous grantor of the estate
Determinable
Determinable estate usage limitations if the restrictions are violated the state automatically reverts to the grantor or heirs
Condition subsequent
If any condition is violated the previous owner may repossess the property however a reversion of the estate is not automatic; The grantor must retake physical possession within a certain timeframe
Life tenant
A freehold state that is limited in duration to the life of the owner or other named person. Upon the death of the estate passes to the original owner or another named party
Reminder
If a life estate name is a third-party to receive title to the property upon termination of life estate the party enjoys future interest call reminder interest reminder estate. The owner is called remainderman
Reversion
If no reminder state is established the estate reverts to The original owner or owners Heirs. In this case the owner retains a recessionary interest or estate
Two types of life estate
Conventional and legal
Conventional
Created by a grant from a fee simple property owner to the grantee or life tenant. Following the termination of the estate right past to a remainder man or revert to the previous owner
Conventional life estate
Two conventional life estate are ordinary and the put autre vie life estate
Pur autre vie
A life estate indoors over the lifetime of a third-party after which the property passes from the tenant holder to the original grantor (reversion)or a third-party (remainder man)
Example: Yvonne grants a life estate to Ryan to ensure over the lifetime of Yvonne’s husband Steve. Upon Steves’s death Yvonne establishes that her mother Rose will receive the property
Legal life estate
Defining and protecting the property rights of surviving family members upon the death of a husband or wife. Created by state laws as opposed to being created by owner property agreement.
Forms of legal life estate
Homestead, dower, curtsy, Elective share
Homestead
Once principal residence. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts.
Dower and curtesy
Tower is a wife’s life estate interest in the Husbans property. Curtsy is the identical Wright enjoyed by the husband in a deceased wife’s property. Property acquired under the dour loss is owned by the surviving spouse for the duration of his or her lifetime
Elective share
Enabling a survivor spouse to make a minimum Cline to the deceased spouse real and personal property in place of the provision for such property and the descendants will. Example
If a husband’s wheel excludes the wife for my property in Heritance the wife may upon a husband’s death make the elective share Cline
Estate at sufferance
A tenant occupies the premises without consent of the landlord or other legal agreement with the landlord. Usually involves a tenant who fails to vacate at the expiration of the lease continuing occupancy without any right to do so. A tenant who violates the provisions of the lease is evicted. The tenant protest and refuses to leave Despite the evection order
Conventional life estate
Life estate created by a grant from a fee simple property owner to the grantee, the life tenant. Following the termination of the estate, right past to a remainder-man, or previous owner.
During this period the owner enjoys all Ownership rights, provided they do not infringe on the rights of the reminder or a version interest holders such as damage to the property jeopardizing the value
Two types of conventional life estate are
Ordinary and pur autre vie life estates
Ordinary life estate
And with the death of the life estate owner, may pass back to the original owners or heirs or to a named third-party
Pur Autre Vie
Life estate endures Over the lifetime of a third person, after which the property passes from the tenant holder for the original grantor (reversion)or third-party(remainder man)
Legal life estate
Created by state law, varies from state to state. Defining and protecting your property rights of surviving family members upon the death of a spouse also known as marital rights
Homestead
A Homestead is One’s principal residence. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts.
Dower and curtesy
Gauer is a wife’s life estate interest in the Husbans property. When a husband dies the Y can make a claim to portions of the descendants property.
Curtesy The identical right enjoyed by the husband in a deceased wife’s property. Property required under these laws is owned by the surviving spouse for the duration of his or her life
Elective share
State level statute enable and A surviving spouse to make a minimum claim to the deceased spouses real and personal property in place of the provisions of such property and the descendants will
Community property
Former owner ship that distinguishes property into categories of separate (owned by one party) and community (owned equally by both parties)
Highest form of ownership interest one can acquire?
Face simple estate, includes a complete bundle of rights and the tenancy is unlimited
What are the essential characteristics a fee simple defeasible Estates?
The property must be used for a certain purpose or under certain conditions. If they use changes or is prohibited conditions are present, the estate reverts to the previous grantor of the estate
How was the life estate different from a fee simple estate?
A life estate is limited in duration to the life of the owner or other night person. When the life tenant dies, the estate passes to the original owner or other named party. The last tenant does not have the right to pass ownership to his or her ears.
Leasehold estate
Arises from the execution of a lease by a fee owner. 4 main types of leasehold estate are: Estate for years Estate from period to period estate at will Estate at sufferance
Estate for years
A leasehold estate for a definite period of time, with the beginning date and ending date.
Features:
Has a definite beginning and ending date
Does not require notice to terminate at the end of the term
Renewal is not automatic, when this type of lease is over, it’s over
Estate from period to period
Also called periodic tenancy, The Tennessee. Automatically renews for an indefinite period of time. At the end of the Tennessee., If the landlord excepts another regular payment of rent, the leasehold is considered to be renewed for another period.
Features;
no definite ending date can renew it sell for whatever period of time was agreed upon in original lease
Either party may terminate tenancy I’ll give them proper notice to the other party proper notice is defined by state law
Estate at will
Also called Tenancy at will, has no definite expiration date no renewal cycle
Features;
Landlord lets you stay without a lease
Notice can be given by either party without warning
Death of either party immediately terminates tenancy
Estate at sufferance
A tenant occupied the premises without consent of the landlord or other legal agreement with the landlord. Usually involves a tenant who fails to vacate at the expiration of the lease continuing occupancy without any right to do so.
Features;
Holdover tenant is an unlawful possession of the property
The landlord must evicted it through the courts, cannot lock the tenant out, turn off utilities, or forcibly remove the tenant
What is the primary distinction between freehold estate and Leasehold of State
Duration of the owners rights, at least hold his temporary even if there’s no specific term, while I freehold has indeterminable duration
If a simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible carries some restrictions on usage. Why are other E states less desirable?
With all other estates in land, Life, leasehold, the holder of the state cannot control what happens to the estate in the future. The life estate reverse or is a reminder, the leasehold terminates when the lease expires
Which type of leasehold estate is commonly referred to as a periodic tenancy?
Estate from period to period.
