estates Flashcards
what is an ESTATE and what must it be in order to be an ESTATE?
ESTATE- refers tot he legal rights to sell, lease, encumber, use, enjoy, and pass on real properties by will. ESTATE is the legal rights to the bundle of rights.
-the legal rights of ownership to that property.
MUST: IN ORDER TO BE AN ESTATE:
- Possessive in nature
- Have a length of time duration
how many types of ESTATES are there?
what are the different types of estates? and how many to each?
what are the differences between estates?
there are 14 types of ESTATES.
breakdown:
- 10 freehold estates
- 4 leasehold estates
the difference between estates is THE DURATION OF POSSESSION.
each estate grants the grantee unique benefits as well as restrictions to ownership.
what is a FREEHOLD ESTATE?
FREEHOLD ESTATE- an estate in real property with an uncertain termination date of ownership.
the uncertain termination date of ownership ex:
- a lifetime estate- allows ownership f the property during a lifetime of a person. when the person dies, estate ownership is transferred. Since the length of someone’s life is uncertain, the duration of ownership is uncertain.
what is a LEASEHOLD ESTATE?
how is it different from a FREEHOLD ESTATE?
WHICH IS LESSER OF THE TWO AND WHY?
LEASEHOLD ESTATE- grants the tenant a possession that expires on a specified calendar date.
- the term of the duration can vary from short term, month to month, or long term 99 years or longer.
- the property goes back to the landlord at the end of the lease.
- a LEASEHOLD ESTATE is considered a lesser estate than a freehold estate because leasehold estates can only form from a freehold estate.
For example, Amy rented an apartment for one year.
Amy has the possession of the apartment for the duration of one year. During the tenancy, Amy has the
bundle of rights to enjoy the apartment. Amy has a ________of estate. On the other hand, Bob
and his friends paid a fee to hunt on Teddy’s 200 acre forest land for a day. Bob and his friends have an
interest in Teddy’s land. However, it is a _____to use the land and does not give Bob and his friends’
possession of the land. Therefore, this is not an estate.
AMY HAS A LEASEHOLD TYPE OF ESTATE.
BOB AND HIS FRIENDS HAVE A LICENSE
what is a FEE SIMPLE ABSOLUTE ESTATE?
WHAT DOES IT GRANT?
WHAT ARE THE LIMITATIONS?
is it freehold or leasehold
a FEE SIMPLE ABSOLUTE ESTATE - the highest level of interest in real property. All types of estates come from a FEE SIMPLE ABSOLUTE ESTATE.
- the estate grants the TITLE HOLDER the most complete bundle of rights of ownership.
- it sets the least amount of limitations and is the closest to absolute ownership on can have.
- the term of the duration of possession is unlimited.
- the only limitations to FEE SIMPLE ABSOLUTE INTERESTS are the restrictions set by the government such as building codes, zoning ordinances, or the social regulations set by private entities such as HOA rules and regulations.
- a FEE SIMPLE ABSOLUTE ESTATE is a FREEHOLD ESTATE.
what is a FEE SIMPLE DEFEASIBLE ESTATE?
WHAT KIND OF ESTATE IS IT?
FEE SIMPLE DEFEASIBLE ESTATE- is a type of freehold estate where the grantee must follow certain conditions. The conditions may be that the property must be used only for a SPECIFIC PURPOSE. The grantor sets the conditions. The length of duration of possession is undetermined as long as those conditions are met. if the condition is not met, the estate reverts back to the grantor of the grantor’s heirs.
- this is considered a future interest.
PHRASES SUCH AS:
- “AS LONG AS”
- “IF”
- “ON THE CONDITION THAT”
- FEE SIMPLE DETERMINABLE
2 FEE SIMPLE SUBJECT TO CONDITION SUBSEQUENT
what type of FREEHOLD LEASE IS THIS EXAMPLE?
For example, Mike is an elder of the Tenth Christian Church.
Mike donates a parcel of his land to the church on the condition that the land must be used for church
related activities. The church owns the land “as long as” the land is used for church purposes. If the
land is used for another purpose, the estate reverts back to the grantor Mike. Fee simple defeasible
estates are recognizable by the wording used to describe the condition. Phrases such as “as long as”,
“if”, or “on the condition that,” are often used. There are 2 forms of fee simple defeasible estates: fee
simple determinable and fee simple subject to condition subsequent.
this is an exaple of a FEE SIMPLE DEFESEABLE ESTATE.
what is a Fee Simple Determinable? what phrases does it contain? and what type of estate is it??
FEE SIMPLE DETERMINABLE - a type of FREEHOLD ESTATE contains phrases such as “so long as” , “while”, or “during the period”.
- the grantor of the estate specifies how the property is to be used. as long as the property is used in the specified manner, the grantee holds the title.
- the grantor still holds the possibility of reverte.
- if the property is no longer used as specified in the deed, the estate automatically reverts back to the grantor.
- no legal recourse from the grantor is necessary to acquire the estate back.
what is FEE SIMPLE DEFEASIBLE WITH CONDITION SUBSEQENT? WHAT KIND OF ESTATE IS IT? WHAT PHRASES DOES IT CONTAIN?
FEE SIMPLE DEFEASIBLE WITH CONDITION SUBSEQUENT - (FREEHOLD ESTATE)
-the grantor attaches conditions that the realty must NOT be used for specific activity or venture.
-for example: although the local zoning may permit a commercial shopping mall on the land, the condition
set by the grantor prohibits using the land for commercial purposes.
-It contains phrases such as “on the condition that,” “provided that”, or “if”.
-the grantor, however, does NOT have the automatic possibility of reverter. Instead, the grantor has a right of re-entry. if the condition is violated, the grantor must retake possession of the property through legal recourse.
A life estate
that is formed through agreement of the parties is referred to as a conventional life estate. A life estate
is transferred while the owner is still alive, or through the owner’s will subsequent to the owner’s death.
The conventional life estate is subdivided into four categories. The difference comes from whose life
the life estate depends on, and to who does the estate revert to after death.
LIFE ESTATES- the duration of possession is limited. the duration of possession depends on someone’s life. (Since the length of someone’s life is uncertain, the term of duration is uncertain.)
- the deed specifies whose life the life estate is measured.
- A LIFE ESTATE can be BOUGHT, SOLD, or LEASED.
- The grantee or the life tenant, is entitiled to any profit arising from the real property.
- CANNOT BE INHERITED or CONVEYED BY WILL
- b/c the term of possession is limited on someone’s life, it is difficult to sell or mortagage a life estate.
OBLIGATIONS of the life tenant:
- must not injure or neglect the care of the property, or waste.
DIVIDED INTO TWO CATEGORIES:
- Conventional life estate
- Life estate legal
Type: Freehold estate
For example, Mary conveys a parcel of land to farmer John as a _______ESTATE during
John’s lifetime. John is the life tenant. Upon the death of farmer John, the parcel of land returns to
Mary or to a third party.
THIS IS AN EXAMPLE OF WHAT TYPE OF ESTATE WHICH IS ALSO PART OF A _____ESTATE?
this is an example of a LIFE ESTATE
TYPE OF FREEHOLD ESTATE
A life estate that is formed through agreement of the parties is referred to as a __________.
CONVENTIONAL LIFE ESTATE- a life estate that is formed through agreement of the parties.
what is DOWER? and what is the opposite?
DOWER - a legal right created by the state for ht widow of a deceased husband to claim an interest on any real property her husband may have ownded and acquired during the marriage.
DOWER- is meant to creat support for the wife after the death of the husband and is practiced in non-community property states.
what is CURTSEY and what is the opposite?
CURTSEY- a legal right created by the state for the surviving husband to claim an interest on any real property his wife may have owned and acquired during the marriage. CURTSEY and DOWER laws are no longer practiced in many states and are re-laced by the UNIFORM PROBATE CODE (UPC) - automatically allows the surviving spouse a share upon the death of the spouse.
