Interest in RE Flashcards
*What is a freehold?
Ownership
*What is fee simple absolute?
The default type of ownership. Own property absolutely
*What is Fee Simple Defeasible?
- Ownership that is limited in some way. Something can cause you to lose ownership
- subject to a condition subsequent=lawsuit
fee simple subject to a condition subsequent means?
lost of ownership when legal action is brought pursuant to the violation of limitation in fee simple defeasible
life estates
fee simple ownership for your life.tenants deed will state who receives the life estate (usually a remainder) at death in a habendum clause
what is an habendum clause
a clause that states who takes over a tenants life estate after their death
*Life estate in reversion
transfers back to the original owner/grantor when a tenant dies
*life estate is in remainder
passes to a 3rd party named by owner/grantor after tenant dies
*pur autre vie
french for “another life”-based not on the life of the tenant but on another life (3rd party) named by the owner/grantor
What is severalty?
only 1 owner
co-ownership
ownership shared by 2 more people including corps
*tenancy in common?
default form of co-ownership and is inheritable
*joint tenancy
all owners must hold 4 unities:
1. unity of possessions ( all own equally)
2. unity of time (all buy at the same time)
3. unity of interest ( all have equal interest)
4.unity of title (all on deed at same time)
is not inheritable and last man standing claims which leads to survivorship
*tenancy by the entirety
joint tenancy for married couples. Offers creditor protection, automatic homestead
condominiums
- joint ownership of common areas and fee simple ownership of units
- sets up a master deed
- condo association
- condo fees
cooperative (coop)
- co-ownership in apartment buildings
- own stock or shares in the company which gives proprietary lease to units
- sale of unit subject to approval
trust
-created during a persons life or on their death. The person creating the tryst (trustor) conveys prop. to a trustee who cares for the trust assest on behalf of beneficiaries
timeshares
divided time, rather than space in a property .
securities
investments
-syndications are legal entities that invest in a 1 or > re
REIT
REAL ESTATE INVESTMENT TRUST- method of investing in portfolios of re or re loans
REMIC
REAL ESTATE MORTGAGE INVESTMENT CONDUITS- methods of investing in portfolios of re or re loans
non-freehold
possession and use of someone else’s property- basic rental
leasehold
written terms of possession for a fixed timeframe (lease) ex. 12 m lease
tenancy at will
verbal permission to possess a prop w/o any specified term of interval. can be party can terminate
periodic tenancy
automatically renews on some pre-agreed interval until terminated
tenancy at sufferance
holdover tenancy w/o landloard/lessor consent. lessor must evict tenant
what 3 words are interchangeable when discussing property
estate, tenancy, interest
