Real Estate Interests and Ownership Flashcards
Life Estate
For the duration of one’s life
Estate in reversion
Will obtain estate after a certain time - like after a life estate ended
Partition Action
Allows courts to divide property equally between interested parties - usually in a co-ownership situation
Fee (simple) Determinable Estate
As long as agreement - the land is yours as long as “you never go to prison.” If violated the property automatically reverts to the grantor
Fee simple absolute estate
Property wholly owned, transferable and inheritable - no encumbrances other than the gov - highest holding
Net Lease
Tenant is responsible for overhead expenses - maintenance, insurance and taxes
Positive leasehold
Contract less than market - lease agreement is less than economic rent - good for leasee
Negative leasehold
Contract more than market - good for lessor
Tenancy is
A mode of holding
Definition of Estae
- The degree, quantity, nature and extent of ownership interest which a person has in real property
- It refers to one’s legal position of ownership - not to the amount of property owned
- To be an estate, an interest must be possessory or potentially become possessory, and whose ownership is measurable in terms of time duration
Classifications of estates
Freehold - Fee Estates - indefinite duration
Less than Freehold - Definite duration
A corporation can only hold in this type of tenancy
Tenancy in common
Gross Lease
Lessor takes fixed rent and is responsible for all other costs
Chattel Real
Leasehold estate - less than freehold
Personal Interest with real estate
Estate at sufferance
Runs until the landlord takes action. This scenario usually involves a tenant in arrears who refuses to leave. This is the weakest type of estate
Easement appurtenant
Attached to and passes with the dominant tenement as an appurtenance thereof. Can not be seperated
What are the less-than-freehold estates
Estate for years - specific time
Estate from period to period - Runs for lan indefinite number of periods
Estate at will - Runs for as long as the lessor and lessee will it
Estate at sufferance - Runs until landlord takes action
How many days notice must you give to end a month to month lease?
30 days
From the lessee’s perspective, the lease document would be considered what type of property?
Personal property
Easement in gross
Involves only one parcel of land. It is a personal interest, giving one the right to use the land of another.
Vested remainderman
Third party named to receive the life estate upon the death of the original grantee of life interest
Possibility of reverter
upon violation of conditions in deed by the grantee, grantor could regain his interest
Holdover tenant
remains in property after lease
Defeasible Fees - “Defeat-able” conditions to deed
Fee determinable - automatically goes back
Fee conditional - not automatic
