Level 2: Estates

Question 1

Interests in Real Property: Possessory

Answer 1

a present interest (I own this property right now! I’m living in it! I have the right to occupy it!)

Question 2

Interests in Real Property: Non-Possessory

Answer 2

a future interest. (I will inherit and own this property in 10 years! I can’t wait to change the curtains.)

Question 3

Freehold Estates

Answer 3

the individual with the interest has some degree of ownership for an undetermined or unspecified (and therefore unlimited) period of time

Question 4

Leasehold Estates

Answer 4

are considered more temporary, as they usually last for a specific duration of time

Question 5

Freehold Tenant

Answer 5

owner of a freehold estate, the freehold tenant may also have a right of disposition, or right to convey the interest they own

Question 6

Freehold Estates: Fee Simple Estate

Answer 6

grants the most unlimited, most absolute interest in real property. This means that there are NO conditions on the title

Question 7

Fee Simple Estate: Absolute

Answer 7

an estate without restrictions that is freely given to heirs (this is the most common type of residential real estate)

Question 8

Fee Simple Estate: Defeasible

Answer 8

an estate characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions, Ownership reverts back to the original owner if these stipulations are violated

Question 9

Fee Simple Estate Defeasible: Determinable

Answer 9

causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated, no legal action is required of the grantor in order to assume ownership

Question 10

Fee Simple Estate Defeasible: Condition Subsequent

Answer 10

the grantor of the estate must prove (in court) that the defeasible fee estate condition has been violated within a certain time frame

Question 11

Freehold Estates: Life Estate

Answer 11

limited to the duration of a measuring life (this may be the life of the tenant or the recipient of the life estate)

Question 12

Life Estate: Reversionary Interest

Answer 12

the interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original owner (grantor)

Question 13

Life Estate: Remainder Interest

Answer 13

the interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based (the recipient of the future remainder interest is referred to as the remainderman)

Question 14

Life Estate: Act of Waste

Answer 14

If the life tenant were to do anything to diminish the value of the property, they would be committing an act of waste, for which they could be held liable

Question 15

Life Estates: Conventional Life Estate

Answer 15

any life estate created through a grant from a property owner to another party

Question 16

Life Estates: Legal Life Estate

Answer 16

any life estate created by a function of law

Question 17

Conventional Life Estate: Ordinary

Answer 17

the measuring life is that of the life tenant. It is an estate created by a deed that lasts for the duration of the tenant’s life

Question 18

Conventional Life Estate: Pur Autre Vie

Answer 18

the measuring life is someone other than the tenant

Question 19

Life Estate: Homestead Laws

Answer 19

state laws that prevent a person’s primary residence from being forcibly sold to pay certain kinds of debts, or to give a surviving spouse a home if one spouse dies and leaves debt behind

Question 20

Life Estate: Dower and Curtesy

Answer 20

the right of a spouse to inherit a portion of the property held in their spouse’s name after that spouse dies

Question 21

Life Estate: Elective share

Answer 21

state laws that let a spouse make a claim to their deceased spouse’s property, despite what is in the will

Question 22

Freehold Estates Study Guide

Question 23

Freehold Estates Visual Aid