Unit 1 Chapter 5

Question 1

estate in land

Answer 1

the degree and quality of ownership one holds in the land. It is an interest that includes the right of possession.

Question 2

interest

Answer 2

An interest in real estate is ownership of any combination of the bundle of rights to real property, including the
rights to possess, use, transfer, encumber and exclude.

Question 3

undivided interest

Answer 3

An undivided interest is an owner’s interest in a property in which two or more parties share ownership.

Question 4

Estates in land

Answer 4

include the right of possession, and are also called tenancies.

Question 5

Leaseholds-

Answer 5

this term indicates renting or leasing for a fixed term.

Question 6

Freeholds-

Answer 6

this term indicates ownership, and an indefinite period of time.

Question 7

Fee simple estate

Answer 7

• Also “fee,” this is the most common form of estate; not limited by one’s lifetime.
• Fee simple absolute- highest form of ownership interest.
• Defeasible- can revert to previous owner for violation of conditions.

Question 8

Life estate

Answer 8

• Fee estate passes to another upon death of a named party.
• Remainder: interest of a named party to receive estate after holder’s death.
• Reversion: interest of previous owner to receive estate after holder’s death.

Question 9

Conventional life estate

Answer 9

• Full ownership interest, limited to lifetime of life tenant or another named party, created by agreements
between parties.
• Ordinary- on death of life tenant, passes to remainderman or previous owner.
• Pur autre vie- on death of another; passes to remainderman or previous owner.

Question 10

Legal life estate

Answer 10

• Automatic creation of estate through operation of law, designed to protect family survivors.
• Homestead- rights to one’s principal residence.
• Laws protect homestead from certain creditors.
• Dower and curtesy- a life estate interest of a widow(er) in the real property.
• Elective share: right to claim deceased spouse’s property in lieu of will.

Question 11

Community property

Answer 11

• Property owned by two parties.

* Requires consent of both parties to transfer or encumber.

Question 12

Life tenant responsibilities

Answer 12

• Life tenant has all rights of ownership for owner’s life.
• Must protect the property for remainderman or revisionary interest.
• If life tenant damages or misuses property, known as act of waste.