Real Property Ownership

Question 1

“Free” for whatever life the interest owner has, or by some other measure of time or duration. “Free” means no one can invade or challenge that interest for any reason during the duration.

Answer 1

Freehold estate

Question 2

A freehold estate without limitation or restriction and without a designated duration other than the life of the vested owner. The most extensive interest in real property possibly possessed and controlled by the individual owner, heirs, and assignees forever without limitation or condition.

Answer 2

Fee simple absolute

Question 3

An estate that continues until the occurrence of a specified event or circumstance. Upon its occurrence, the estate will cease and terminate automatically with ownership rights reverting to the original grantors.

Answer 3

Fee simple determinable

Question 4

Freehold estate which lays out conditions that allow the possibility of a grantor re-entry.

Answer 4

Fee simple subject to a condition subsequent

Question 5

An estate of which the owner holds title only for the duration of a designated person’s life.

Answer 5

Life estate

Question 6

A life estate that lasts for the life of another person, rather than the owner’s life.

Answer 6

Per autre vie

Question 7

When the freehold estate limits the transfer of the estate to both the present owner and the owner’s or others’ issues or heirs. If the original owners die without heirs, the estate terminates.

Answer 7

Estate in fee tail

Question 8

An estate in which the time of its end is known, certain and definite. Ex. - one month or five years.

Answer 8

Estate for years

Question 9

An informal lease arrangement where the landlord allows a tenant to stay on a month-to-month basis.

Answer 9

Estate at will

Question 10

When tenants stay beyond either the month-to-month period or beyond an exact term of years.

Answer 10

Estate at sufferance

Question 11

Types include joint tenancy, tenancy by the entireties, and tenants in common.

Answer 11

Concurrent ownership

Question 12

To own concurrently, or jointly, one must have this with another party or parties.

Answer 12

Unity of purpose or interest

Question 13

A type of joint ownership where a decedent’s interest in the property DOES pass to their heirs upon their death.

Answer 13

Tenants in common

Question 14

A type of joint ownership where a decedent’s interest in the property DOES NOT pass to their heirs upon their death, but rather to the other joint tenants.

Answer 14

Joint tenants

Question 15

Husband and wife likely receive the realty interest at the same time, with the same deed, and by law, own and possess the property in the same manner.

Answer 15

Tenancy by the entireties

Question 16

A statutory remedy to divide the land.

Answer 16

Partition

Question 17

Generally includes all property acquired by either spouse during the time of the marriage. Does not exist in Pennsylvania.

Answer 17

Community property

Question 18

The partners are equally responsible for all aspects of the real estate activities - profit and loss, management responsibilities, and liabilities.

Answer 18

General partnership

Question 19

Must have one or more general partners who are typically subject to the same rules as partners of a general partnership.

Answer 19

Limited partnership

Question 20

A limited ownership interest for investment purposes.

Answer 20

Joint venture

Question 21

When a fractional, divisible investment in a bevy of real estate properties is allotted based on the amount of investment.

Answer 21

Real Estate Investment Trusts (REITs)

Question 22

An interest in real property consisting of an undivided interest in common in a portion of a parcel of real property.

Answer 22

Condominium