Section 2 - Chapter 4: Estates in Property Flashcards
What is a freehold estate?
A LAND ESTATE that is not limited by a specific time frame.
What are the different names for a “FEE ESTATE?”
- Fee
- Fee Simple
- Fee Simple Absolute
What is a FEE SIMPLE ESTATE?
The highest and most complete type of ownership of land that is possible
How long does a FEE SIMPLE ESTATE last?
A FEE SIMPLE ESTATE exists for an indefinite duration. Not limited to a particular time frame and can be sold or given away (passed on to heirs).
What is a QUALIFIED FEE (SIMPLE) ESTATE?
A QUALIFIED FEE (SIMPLE) ESTATE (also referred to as FEE SIMPLE DEFEASIBLE, DEFEASIBLE FEE) is a FEE SIMPLE ESTATE that has certain limitations.
What does DEFEASIBLE mean?
Capable of being VOIDED, ANNULLED or DEFEATED.
What are the 2 types of DEFEASIBLE (defeatable) FEE ESTATES?
- FEE SIMPLE DETERMINABLE
2. FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT
Should you use an Attorney for DEFEASIBLE FEE transactions?
Yes.
What is a LIFE ESTATE?
It is a FEE SIMPLE ESTATE given to a person that lasts for the duration of that person’s life
Can a LIFE ESTATE be given to a 3rd party?
Yes. And it would be for the duration of that third party’s life as well.
Does the holder of the LIFE ESTATE title have full rights?
Yes. Including the right to use, mortgage, and sell the property.
Can a LIFE ESTATE holder pass on their interest after their death?
No.
What is a LIFE TENANT?
The person holding the LIFE ESTATE
How is WASTE defined?
WASTE is defined as:
The improper use or abuse of property by one in possession who holds LESS THAN FEE OWNERSHIP (such as a tenant, life tenant, mortgagor, or vendee).
What are the maintenance/care obligations of a LIFE TENANT regarding their property?
Life tenants MAY NOT:
Commit waste and are obligated to maintain the premises in a reasonable state of repair, pay taxes, insurance, and mortgage payments.
REMAINDER ESTATE
A future interest in real estate created at the same time and by the same instrument as another estate.
REVERSION ESTATE
The estate that is left, or that reverts to, the GRANTOR after a GRANTOR has conveyed a lesser estate (less than fee interest) to someone else.
How is a REVERSION ESTATE created?
It’s AUTOMATIC. No express words of creation are needed because it is created by operation of law.
STATUTORY ESTATE
Any estate created by law (the enactment of legislation).
What are some examples of STATUTORY ESTATES?
Dower, Curtesy, Community Property, Homestead Exemption
DOWER & CURTESY (STATUTORY ESTATES)
Refer to the legal right or interest that a spouse has in the property of his/her husband/wife. Most states have eliminated Dower and Curtsey
COMMUNITY PROPERTY (STATUTORY ESTATES)
Is based on the theory that each spouse has an equal interest in property acquired by the efforts of either spouse during their marriage.
HOMESTEAD EXEMPTION (STATUTORY ESTATES)
Designed to protect a family home (the ‘homestead’) from general creditors. Most commonly used in bankruptcy proceedings
LEASEHOLD ESTATES (NON-FREEHOLD)
A LEASEHOLD/NON-FREE-HOLD ESTATE is for a definite duration and does not involve ownership of the property. Used during property LEASES.
REVERSION ESTATE
Future right to regain possession of property.
The LANDLORD possesses the REVERSION ESTATE and never relinquishes ownership. This is used when a landlord leases their property.
Who possesses LEASEHOLD (NON-FREEHOLD rights?
A TENANT of a LEASED property - and only for a specified period of time.
Are LEASEHOLD ESTATE are generally classified as ESTATES IN PERSONAL PROPERTY?
Yes.
What are the most common LEASEHOLD ESTATES?
- ESTATE/TENANCY FOR YEARS
- ESTATE/TENANCY FROM YEAR TO YEAR
- ESTATE/TENANCY AT WILL
- ESTATE/ESTATE TENANCY AT SUFFERANCE
ESTATE/TENANCY FOR YEARS
Involves a lease that has a definite beginning and definite end date. It DOES NOT automatically renew and can be for any definite duration of time; one day, one week or 20 years and is not terminated by sale of the property
ESTATE/TENANCY FROM YEAR TO YEAR
Any TENANCY or LEASE that runs for an INDEFINITE number of time periods; week-to-week, month-to-month, etc. Requires proper notice to terminate and auto-renews if no termination notice is received.
ESTATE/TENANCY AT WILL
Exists when a tenant is in lawful possession of real estate with NO SPECIFIED TIME of vacating and NO SPECIFIED PERIOD (month-to-month, week-to-week, etc).
When is ESTATE/TENANCY AT WILL terminated?
- When the property is SOLD.
- By DEATH of either party.
- By NOTICE of either party.
ESTATE/TENANCY AT SUFFERANCE
Exists when a tenant occupies real estate after his lawful rights have run out.
When does an ESTATE/TENANCY AT SUFFERANCE end?
It runs until the TENANT VACATES or the LANDLORD decides to take some action. Termination does not require notice.