Unit 2: Freehold Estates

Question 1

What is an estate?

Answer 1

The legal interest in real property that allows for possession.

Question 2

What are the 2 types of estates?

Answer 2

1) Freehold

2) Leasehold

Question 3

What is a freehold estate?

Answer 3

The OWNERSHIP of real property for an indefinite duration.

Question 4

What are the 3 types of freehold estates?

Answer 4

1) Fee Simple Absolute
2) Fee Simple Defeasible
3) Life Estate

Question 5

T/F Fee simple absolute lasts forever and has the maximum rights of ownership.

Answer 5

True

Question 6

What is fee simple defeasible?

Answer 6

The ownership of real property based on conditions stated in the deed.

Question 7

T/F If your grandma leaves her house to you when she passes based on a set of conditions you need to meet, this is an example of fee simple defeasible.

Answer 7

True

Question 8

What is another name for fee simple defeasible?

Answer 8

Qualified Fee

Question 9

What is a life estate?

Answer 9

The ownership and use of the property for the duration of their life or another’s life (pur autre vie).

Question 10

What happens to a property when the life tenant dies?

Answer 10

The estate returns to the party named in the deed, either the grantor or the third party, as a fee simple absolute.

Question 11

What is another name for the grantor of a life estate?

Answer 11

Reverter

Question 12

What is another name for the third party of a life estate?

Answer 12

Remainderman

Question 13

T/F All freehold estates are transferable and inheritable.

Answer 13

False. All freehold estates are transferable but life estates are not inheritable.