Interests & Estates

Question 1

Interests - Possession

Answer 1

Estate

Question 2

Interests - Non-possession

Answer 2

Encumbrance; public interest

Question 3

Estates - Freehold Fee Simple Absolute/Fee Simple

Answer 3

Gives the owner the greatest interest possible. A “fee” is a vested, inheritable, present possessory interest in land

Question 4

Estates - Freehold - Defeasible

Answer 4

Legal term, type of property ownership, where the ownership is dependent on specific conditions. If the conditions of ownership are violated, the property may be returned to the grantor or to a specified third party.

Question 5

Estates - Freehold - Life Estate

Answer 5

Ownership of land for the duration of a person’s life; (reversion) ownership reverts to the original owner; (remainder) passes to another person

Question 6

Freehold Conventional Life Estate

Answer 6

Limited to lifetime of life tenant or named party; pur autre vie, limited to lifetime of another; remainderman or previous owner

Question 7

Legal Life Estate

Answer 7

Created by operation of state law as opposed to a property owner’s agreement
designed to protect family survivors
homestead

Question 8

Homestead

Answer 8

Rights to one’s person’s principal residence
Laws protect homestead from creditors
Family must occupy the homestead
Cannot be conveyed by one spouse
Endures over life of head of household
Interests extinguished if property is destroyed