Unit 4 - part 1 Flashcards
Types of ownership interest in real estate?
- Freehold Estate
2. Non-freehold Estate
What is non-freehold estate?
Is one for which the length of time of the property’s use can be determined. A non-freehold estate is commonly referred to as a leasehold estate.
What is freehold estate?
An ownership interest that last for an indeterminable length of time, such as for a lifetime or forever.
Types of freehold estate?
- Fee Simple Estate (that continues for an indefinite period and may be passed along to the owner’s heirs).
- Life Estate (that is held only for the lifetime of a person who may or may not be the holder of the life estate).
What is fee simple estate?
A fee simple estate (or fee simple absolute) is the highest interest in RE recognized by law. This is the ownership in which the holder is entitled to all rights to the property by law and is intended to run forever.
What limites a fee simple estate?
The right to use a fee simple estate is limited only by public and private restrictions, such as zoning laws and restrictive covenants.
What is fee simple defeasible (poništiv)?
A fee simple defeasible estate is a qualified fee estate that is subject to the occurrence or nonoccurrence of some specified event.
What are categories of fee simple defeasible?
- Fee simple determinable (odredljiv)
2. Fee simple subject to a condition subsequent.
What is fee simple determinable?
It’s a fee simple defeasible estate that may be inherited. This estate is qualified by a special limitation - words such - as long as, or while or during - is the key to creating this special limitations.
The former owner retains a possibility of reverter If the limitation is violated, with no need to bring a legal action in court. The title is automatically transferred to the person who holds the possibility of reverter.
(for example, churches…)
What is fee simple subject to a condition subsequent?
With a fee simple subject to a condition subsequent, an owner gives real estate on condition of ownership, which means there is a difference in the way the estate will terminate if there is a violation of the condition.
The estate does not automatically terminate upon violation of the condition of ownership. The owner has the right of reentry but must bring a legal action in court to assert this right.
