Estates

Question 1

What is an estate?

Answer 1

Estate refers to the degree, quantity, nature, and extent of interest (ownership rights) a person can have in real property

Question 2

Estates are divided into which two groups?

Answer 2

• Freehold estates - for an indefinite length
• Leasehold estate (nonfreehold estates) - for a fixed term (known duration)

remember “free” = no limitations = forever

Question 3

What is a fee simple estate?

Answer 3

Interest can be inherited

Question 4

Which kind of estate has the largest bundle of legal rights?

Answer 4

• Fee simple estate
• Ownership interest with complete power to use, to dispose of, and to allow the property to descend to heirs
• Highest type of real property interest recognized by law