LEVEL 2 TERMS Flashcards
Fee simple defeasible
A property where ownership is based on the condition that the property is used for a certain purpose or under specific conditions- if these conditions are broken, ownership reverts back to original owner.
Fee simple estate
Maximum ownership of real property. Freely transferable, freely inheritable.
Freehold estate
A form of ownership with a length to it.
Homestead Laws
Laws which protect a homeowner from loss of their principal residence from the claims of creditors.
Legal life estate
Any life estate created from a fuction of a law rather than the actions or desires of a property owner.
Leasehold estate
An interest in the occupation of a property, established through a lease.
Life estate
A type of estate limited to the duration of a measuring life.
Pur autre vie
A life estate characterized by ownership lasting only for the duration of a designanted party’s lifetime.
Remainder interest
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.
Reversionary interest
The interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original fee simple owner (grantor)
Ownership in severalty
Individual or sole ownership (also known as tenancy in severalty)
Co-ownership
Ownership shared with another person (also called concurrent ownership)
Ownership in trust
Where a trust holds property for a person until they are ready to pass it on to their heir or beneficiary.
Undivided interest
A type of interest that gives each co-owner the right of posession of the whole property, not simply a portion of it.
Right of survivorship
Statutory principle of survivorship tenancy, which means that when co-owner dies, their ownership interests reverts to their surviving co-owners.
Unity of possession
Every owner can use all of the property.
Unity of Interest
Each co-owner owns an equal share.
Unity of Time
All co-owners purchased the property at the same time.
Unity of Title
All co-owners purchased the property with the same instrument (deed or a will).
Community property
A system of property co-ownership, most commonly applied to married couples, which describes what is joint property and what is individual property.
Joint tenancy
Co-ownership in which the parties have an equal and undivided interest in the property; includes the right of survivorship rather than inheritance.
Tenancy in common
Co-ownership with individual, undivided interest in the property; includes rights of inheritance rather than survivorship.
Trustor
Creator of the trust.
Trustee
The person entrusted to hold and manage the assets.
Beneficiary
The individual who receives the benefits or assets of the trust. (A trust, will, or insurance policy).
Tangible property
Possessions that physically exist such as a house or a bagel.
Intangible property
Stocks, patents, and other incorporeal things.
Living trusts
Trusts created when a trustor is still alive.
Revocable trusts
Can be changed after they are formed.
Irrevocable trusts
Can’t be changed after they are formed.
Testamentary trusts
Come into being when the trustor dies. They do not prevent assets into going into probate.
Land trusts
Trusts where land is held by a trust for a long period of time. They can be used to avoid liens, hide the owner of a parcel of land, or transfer land as part of a will, among other uses.
General partnership
A business entity in which all co-owners actively share power, liability, responsibilities, and profit.
Limited partnership
A business entity composed of both general and limited partners- the general partners manage the business and limited partners are passive investors.
Sole proprietorship
Ownership of a business by a lone individual (or a married couple acting as a single person)
Trust
A legal entity where control of some asset or property is transferred by a grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary).
