Property Ownership/ Types Of Estates

Question 1

Define freehold estate

Answer 1

Refers to ownership and provides homeownership for an undetermined length of time

Question 2

Define Leasehold estate

Answer 2

Refers to tenancy and provides interest in real estate for a limited time

Question 3

Define fee simple (fee simple absolute)

Answer 3

An inheritable freehold estate - this is ownership not tenancy - property can be willed or inherited - provides the most complete form of ownership and includes the bundle of rights

Question 4

Define fee simple defeasible (qualified fee)

Answer 4

Permits recovery of fee simple ownership if certain conditions aren’t met.

Question 5

Define fee simple determinable estate

Answer 5

A type of fee simple defeasible estate and an inheritable freehold estate, where the title remains with the new owner as long as conditions of ownership are being met.

Question 6

Define fee on condition (fee simple subject to a condition subsequent) estate

Answer 6

Another type of fee simple defeasible estate that is inheritable and is recognizable when the words “but if” appear in the deed. The estate continues unless a specific event occurs, in which case ownership may revert to the owners or owners successors. Termination and recovery of ownership must be achieved through court order.

Question 7

Define Life estate

Answer 7

An estate that includes ownership, possessions, and control for someone’s lifetime

Question 8

Define life tenant

Answer 8

Responsible for reasonable property maintenance, property taxes, repairs etc…

Question 9

Define act of waste

Answer 9

An abuse of property by a person who holds interest through a life estate

Question 10

Define remainderman

Answer 10

A life estate with remainder interests refers to a situation in which a remainderman named by the owner when forming the estate receives title to the property upon death of the life tenant.

Question 11

Define remainder interests

Answer 11

The remaindermans right to fee simple title upon death of a life tenant.

Question 12

Define reversionary interest

Answer 12

A life estate in Which the property title reverts to the owner upon death of the life tenant.

Question 13

Define pur autre vie life estate

Answer 13

Created by a property owner who grants an estate to someone for the duration of another individuals life

Question 14

Define estate for years

Answer 14

An estate for a specified period of time

Question 15

Define estate at will

Answer 15

A tenancy for an unknown period of time. Either party can terminate lease by giving notice

Question 16

Define estate at sufferance

Answer 16

A tenancy in which the tenant stays in possession after the lease expires

Question 17

Define dower

Answer 17

A form of legal life estate that refers to a wife’s interest in the real estate owned by her deceased husband - not recognized in all states

Question 18

Define curtesy

Answer 18

A form of legal life estate that refers to a husbands interest in the real estate owned by his deceased wife.

Question 19

Define escheat

Answer 19

The states power to claim property when an owner dies without a will, and without heirs or creditors

Question 20

Define homestead

Answer 20

A type of estate that gives the owner special protections in property used as a family home. Not all states recognize the homestead concept.

Question 21

Define tenancy in common

Answer 21

Concurrent ownership with two or more people

Terms: each person is entitled to possession of the whole - if one dies that persons ownership is inheritable and doesn’t necessarily pass to the other owners

Question 22

Define joint tenancy

Answer 22

Concurrent ownership with two or more people

Terms: equal ownership with undivided rights of possession and requires unity of four separate conditions: all owners must have the same type of interest in the property, all must receive their title at the same time from the same source, all must have the same percentage of ownership, and all must have the right undivided possession in the property. Joint tenancy includes the right of survivorship meaning when one joint tenant dies the person share automatically goes to the other surviving joint tenants

Question 23

Tenancy by the entirety

Answer 23

Concurrent ownership between two married people

Terms: also has the right of survivorship. Only available to married couples this form of ownership. Also includes unity of time, title, interest, possession, and marriage.

Question 24

Rights of survivorship – tenants in common

Answer 24

No right of survivorship; when a co-owner dies interest can pass, according to the descendants will; the beneficiary becomes a tenant in common

Question 25

Rights of survivorship – joint tenancy

Answer 25

Joint tenancy includes the right of survivorship; when a joint tenant dies, interest passes to another joint tenants. When there are only two joint tenants left the death of one of the owners terminates, the joint tenancy, and the survivor takes the title in severalty.

Question 26

Rights of survivorship – tendency by the entirety

Answer 26

Between spouses only; when one spouse dies interest passes to the other spouse

Question 27

List the types of co-ownerships

Answer 27

Tenancy in common
Joint tenancy
Tenancy by the entirety