Interest in Real Property

Question 1

What are the bundle of rights?

Answer 1

PLUME

a. Possession
b. Lease/Sell
c. Use and enjoyment
c. Mortgage
e. Exclude others
f. Control

Question 2

Freehold Estate

Answer 2

Ownership is implied vs possessionary

Question 3

Fee Simple Absolute

Answer 3

Ownership without conditions

Highest and most common form

Question 4

Fee Simple Defeasible

Answer 4

Ownership with conditions

“gift property to city as long as not made into a park”

Question 5

Life Estate

Answer 5

a. Measured by the lifetime of the new owner;
b. Pur autre vie - Limited to the life of the tenant;
c. Reversion - Upon death property reverts back to Grantor/Owner; or
d. Remainderman - to a 3rd party

Question 6

Dower/Curtesy

Answer 6

property rights given to other spouse in the event of spouse’s death - Dower to Wife; Curtesy to Husband.

Not lawful in Michigan

Question 7

Leasehold Estate

Answer 7

Implies Possessory rights (hence lease)

Question 8

Estate for Years

Answer 8

Fixed Period - eg 1-year lease

Question 9

Estate from period to period

Answer 9

Self-renewing (Month to month) lease

Question 10

Tenancy at Will

Answer 10

Will of the parties - No Contract (eg. Hotel stay)

Question 11

Tenancy at Sufferance

Answer 11

Tenant fails to vacate after expiration of lease (eg holding over)

Question 12

Gross Lease

Answer 12

Rent, only

Question 13

Net Lease

Answer 13

Set amount, expenses not factored in rent

Question 14

Percentage Lease

Answer 14

Percentage of Sales

Question 15

Ground Lease

Answer 15

Lease land for 50 or 99 years

Question 16

Variable Lease

Answer 16

Rents increases are factored in after 3-years