Types of Estates Flashcards
What are the 4 types of Estates?
1. L___________ E_______
2. Eq_________ E_______
3. F____________ E_______
4. C____________ E________
- Leasehold Estates
- Equitable Estates
- Freehold Estates
- Concurrent Estates
This occurs when a freehold estate owner has ownership interest on the property, but another party has an interest in the property that is less than the interest afforded by ownership.
EXAMPLE
A seller accepts a buyer’s offer. The sale has not closed yet, so the seller still has ownership interest. But the buyer, by entering into a sales contract with the seller, now has an equitable estate.
Or, if another party has an easement on your property, then that too is considered an equitable estate.
EXAMPLE
If there is a utility pole in your yard, the electricity provider has an easement (and an equitable estate) in your property.
E__________ Estate
Equitable Estate
(commonly created by encumbrances)
What are the 3 types of Freehold Estates?
1. F___ S_____ A_______
2. D___________ F___ Estate
3. L_____ Estate
- Defeasible Fee Estate
-Fee Simple Determinable
-reverts automatically
-Fee Simple Subject to Condition Subsequent
-must go to court to revert - Fee Simple Absolute: most absolute interest
- Life Estate
-Conventional Life Estate (including Pur Autre Vie)
-Legal Life Estate
What are the 2 types of Life Estates?
C_________ L_____ Estate
and
L_____ L_____ Estate
- Conventional Life Estate
-the deed lasts for the duration of the tenant’s
life…ownership reverts to remainderman upon their death - Legal Life Estate
-these are created automatically…tenant has right to occupy for their lifetime
A life estate in which the measuring life is that of the life tenant; it is an estate created by a deed that lasts for the duration of the tenant’s life.
C___________ L_____ Estate
Conventional Life Estate
A property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions; ownership reverts back to the original owner is these stipulations are violated.
EXAMPLE
An owner may donate a piece of property to a nonprofit organization with the stipulation that when the group disbands, the property will revert back to the family of the individual (grantor) who donated the property
D____________ Fee Estate
Defeasible Fee Estate
The degree, quantity, and extent of interest on owns in property
E_______
Estate
A lease with a specific starting and ending date: aka, tenancy for years
E________ for Y________
Estate for Years
A type of defeasible fee estate which causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated
EXAMPLE
Someone in San Antonio may own a property near a large football stadium. If a charitable organization were to approach the owner and says they would like to use the property for fundraising events, the owner might agree to transfer ownership to the group with the stipulation that the property will return back to them if San Antonio were to get a National Football League team.
In this case, the charity could do whatever they want with the property while they owned it, but the property would go back to the grantor (the one who transferred ownership to the charity) once the NFL team came to town.
F____ S______ D______________ Estate
Fee Simple Determinable Estate
Maximum ownership of real property; is of indefinite duration, freely transferable, and freely inheritable; aka: fee or fee simple absolute
F___ S_______ Estate
Fee Simple Estate
A type of defeasible fee estate that comes with specific requirements (or conditions) that, for ownership to change, the grantor of the estate must prove in court that the condition has been violated within a certain time frame
If a property owner wanted to donate some land to a private school with the stipulation that the school did not allow incendiary devices or fires of any kind for any purpose on the property before, during, or after school operating hours, the property owner (grantor) could convey the property as a defeasible fee estate subject to condition subsequent.
So long as the school abided by the condition the property owner set forth, it would retain possession of the property.
If, on the other hand, after taking possession of the property, the school held a homecoming football game bonfire, and the grantor found out about it, the grantor could exert their right to re-entry and take repossession of the property from the school.
It’s important to note that the grantor would have to go to court to exert their right to re-entry. And if they did, and the judge sided in their favor, the original owner would have the right to take repossession.
F____ S______ S________ to C_________ S___________
Fee Simple Subject to Condition
Subsequent
a form of ownership with an indeterminable length
F__________ Estate
Freehold Estate
an interest in the occupation of a property, established through a lease, aka: non-freehold or less-than-freehold
L___________ Estate
leasehold estate
any life estate created by a function of law as opposed to the actions or desires of a property owner
L_______ L_______ Estate
Legal Life Estate
a type of estate limited to the duration of a measuring life
L_______ Estate
Life Estate
a life estate characterized by ownership lasting only for the duration of a designated party’s lifetime
P___ A____ V___
Pur Autre Vie
the interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based
R___________
Remainder
the person who holds the remainder interest in a life estate
R_____________man
Remainderman
the interest in an estate wherin, upon the death of the life estate owner, full ownership reverts back to the original fee simple owner (grantor)
R_____________ In______
Reversionary Interest
estate created as a matter of state law
St___________ Estate
Statutory Estate
