Types of Estates Flashcards
freehold estate
estate of indefinite duration and can be sold or inherited. The freehold estate is a real property estate of an owner, whose hold on the estate is free of anyone else’s restrictions.
less-than-freehold estate
estate owned by a tenant who rents real property. The tenant has temporary and limited right of use in a real property estate. The rights are set forth in a lease, which is personal property. The less-than-freehold estate is a real property estate of a tenant, and is known as a leasehold estate.
Estates in Fee
An estate in fee, sometimes known as a fee or fee simple estate, is the most complete form of ownership. It is known as an estate of inheritance or a perpetual estate because the owner of an estate in fee may dispose of it in his or her lifetime or after death by will. This is the most common type of estate that is transferred in a normal real estate transaction. If the property is transferred or sold with no conditions or limitations on its use, it is known as an estate in fee simple absolute. A property owner may impose qualifications, conditions, or restrictions when transferring title to property. Property restrictions are created by deed or written agreement. If a seller imposes qualifications or conditions that the buyer must do or not do, this is known as a fee simple qualified or fee simple defeasible estate. The conditions are classified as a condition subsequent or a condition precedent.
pur autre vie
The term used to describe a life estate created on the life of a designated person. Tom grants a life estate to Susan for the life of Elizabeth, with the provision that it goes to Laura when Elizabeth dies. Susan may enjoy the benefits of the life estate as long as Elizabeth is alive. Upon Elizabeth’s death, the estate goes to Laura or her heirs.
Estate in reversion
Amy grants Bob a life estate with the provision that upon Bob’s death, the property reverts to Amy. Bob is then the life tenant, or the designated party on whom the life estate is based. Amy holds an estate in reversion.
Reserving a life estate
An elderly couple sells their property to a developer reserving the right to live on the property until their death when the developer will be able to take possession of the property.
Estate in remainder
Greg grants a life estate to Linda, with the provision that upon Linda’s death, the property goes to a third party, Charles. The interest that Charles holds is known as an estate in remainder.
estate for years
for a fixed term. It does not have to be for only a year, but if a definite end date is stated, it nevertheless is known as an estate for years. The lease of office space or a commercial center is commonly an estate for years. It is not automatically renewable and does not require notice to quit at the end of the lease (must be renegotiated). It is a less-than-freehold estate.
Estate from Period to Period
Another kind of lease or rental agreement, probably the most common for residential use, is the estate from period to period, also known as periodic tenancy. This month-to-month tenancy requires 30-days notice to quit. It automatically renews itself unless terminated by landlord or tenant.
Estate at Will
When there is no written agreement between the landlord and tenant, the tenancy is known as an estate at will. The tenancy may be ended by the unilateral decision of either party. There is no agreed-upon termination date; however, and either party must give 30-days notice before ending the tenancy.
Estate at Sufferance
occurs when a tenant occupies the property without paying rent and without permission from the landlord.
