Real Estate Interests and Ownership

Question 1

Life Estate

Answer 1

For the duration of one’s life

Question 2

Estate in reversion

Answer 2

Will obtain estate after a certain time - like after a life estate ended

Question 3

Partition Action

Answer 3

Allows courts to divide property equally between interested parties - usually in a co-ownership situation

Question 4

Fee (simple) Determinable Estate

Answer 4

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

Question 5

Fee simple absolute estate

Answer 5

Property wholly owned, transferable and inheritable - no encumbrances other than the gov - highest holding

Question 6

Net Lease

Answer 6

Tenant is responsible for overhead expenses - maintenance, insurance and taxes

Question 7

Positive leasehold

Answer 7

Contract less than market - lease agreement is less than economic rent - good for leasee

Question 8

Negative leasehold

Answer 8

Contract more than market - good for lessor

Question 9

Tenancy is

Answer 9

A mode of holding

Question 10

Definition of Estae

Answer 10

1. The degree, quantity, nature and extent of ownership interest which a person has in real property
2. It refers to one’s legal position of ownership - not to the amount of property owned
3. To be an estate, an interest must be possessory or potentially become possessory, and whose ownership is measurable in terms of time duration

Question 11

Classifications of estates

Answer 11

Freehold - Fee Estates - indefinite duration

Less than Freehold - Definite duration

Question 12

A corporation can only hold in this type of tenancy

Answer 12

Tenancy in common

Question 13

Gross Lease

Answer 13

Lessor takes fixed rent and is responsible for all other costs

Question 14

Chattel Real

Answer 14

Leasehold estate - less than freehold

Personal Interest with real estate

Question 15

Estate at sufferance

Answer 15

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

Question 16

Easement appurtenant

Answer 16

Attached to and passes with the dominant tenement as an appurtenance thereof. Can not be seperated

Question 17

What are the less-than-freehold estates

Answer 17

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

Question 18

How many days notice must you give to end a month to month lease?

Answer 18

30 days

Question 19

From the lessee’s perspective, the lease document would be considered what type of property?

Answer 19

Personal property

Question 20

Easement in gross

Answer 20

Involves only one parcel of land. It is a personal interest, giving one the right to use the land of another.

Question 21

Vested remainderman

Answer 21

Third party named to receive the life estate upon the death of the original grantee of life interest

Question 22

Possibility of reverter

Answer 22

upon violation of conditions in deed by the grantee, grantor could regain his interest

Question 23

Holdover tenant

Answer 23

remains in property after lease

Question 24

Defeasible Fees - “Defeat-able” conditions to deed

Answer 24

Fee determinable - automatically goes back

Fee conditional - not automatic