Section 2 - Chapter 4: Estates in Property

Question 1

What is a freehold estate?

Answer 1

A LAND ESTATE that is not limited by a specific time frame.

Question 2

What are the different names for a “FEE ESTATE?”

Answer 2

1. Fee
2. Fee Simple
3. Fee Simple Absolute

Question 3

What is a FEE SIMPLE ESTATE?

Answer 3

The highest and most complete type of ownership of land that is possible

Question 4

How long does a FEE SIMPLE ESTATE last?

Answer 4

A FEE SIMPLE ESTATE exists for an indefinite duration. Not limited to a particular time frame and can be sold or given away (passed on to heirs).

Question 5

What is a QUALIFIED FEE (SIMPLE) ESTATE?

Answer 5

A QUALIFIED FEE (SIMPLE) ESTATE (also referred to as FEE SIMPLE DEFEASIBLE, DEFEASIBLE FEE) is a FEE SIMPLE ESTATE that has certain limitations.

Question 6

What does DEFEASIBLE mean?

Answer 6

Capable of being VOIDED, ANNULLED or DEFEATED.

Question 7

What are the 2 types of DEFEASIBLE (defeatable) FEE ESTATES?

Answer 7

1. FEE SIMPLE DETERMINABLE

2. FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT

Question 8

Should you use an Attorney for DEFEASIBLE FEE transactions?

Answer 8

Yes.

Question 9

What is a LIFE ESTATE?

Answer 9

It is a FEE SIMPLE ESTATE given to a person that lasts for the duration of that person’s life

Question 10

Can a LIFE ESTATE be given to a 3rd party?

Answer 10

Yes. And it would be for the duration of that third party’s life as well.

Question 11

Does the holder of the LIFE ESTATE title have full rights?

Answer 11

Yes. Including the right to use, mortgage, and sell the property.

Question 12

Can a LIFE ESTATE holder pass on their interest after their death?

Answer 12

No.

Question 13

What is a LIFE TENANT?

Answer 13

The person holding the LIFE ESTATE

Question 14

How is WASTE defined?

Answer 14

WASTE is defined as:
The improper use or abuse of property by one in possession who holds LESS THAN FEE OWNERSHIP (such as a tenant, life tenant, mortgagor, or vendee).

Question 15

What are the maintenance/care obligations of a LIFE TENANT regarding their property?

Answer 15

Life tenants MAY NOT:
Commit waste and are obligated to maintain the premises in a reasonable state of repair, pay taxes, insurance, and mortgage payments.

Question 16

REMAINDER ESTATE

Answer 16

A future interest in real estate created at the same time and by the same instrument as another estate.

Question 17

REVERSION ESTATE

Answer 17

The estate that is left, or that reverts to, the GRANTOR after a GRANTOR has conveyed a lesser estate (less than fee interest) to someone else.

Question 18

How is a REVERSION ESTATE created?

Answer 18

It’s AUTOMATIC. No express words of creation are needed because it is created by operation of law.

Question 19

STATUTORY ESTATE

Answer 19

Any estate created by law (the enactment of legislation).

Question 20

What are some examples of STATUTORY ESTATES?

Answer 20

Dower, Curtesy, Community Property, Homestead Exemption

Question 21

DOWER & CURTESY (STATUTORY ESTATES)

Answer 21

Refer to the legal right or interest that a spouse has in the property of his/her husband/wife. Most states have eliminated Dower and Curtsey

Question 22

COMMUNITY PROPERTY (STATUTORY ESTATES)

Answer 22

Is based on the theory that each spouse has an equal interest in property acquired by the efforts of either spouse during their marriage.

Question 23

HOMESTEAD EXEMPTION (STATUTORY ESTATES)

Answer 23

Designed to protect a family home (the ‘homestead’) from general creditors. Most commonly used in bankruptcy proceedings

Question 24

LEASEHOLD ESTATES (NON-FREEHOLD)

Answer 24

A LEASEHOLD/NON-FREE-HOLD ESTATE is for a definite duration and does not involve ownership of the property. Used during property LEASES.

Question 25

REVERSION ESTATE

Answer 25

Future right to regain possession of property. The LANDLORD possesses the REVERSION ESTATE and never relinquishes ownership. This is used when a landlord leases their property.

Question 26

Who possesses LEASEHOLD (NON-FREEHOLD rights?

Answer 26

A TENANT of a LEASED property - and only for a specified period of time.

Question 27

Are LEASEHOLD ESTATE are generally classified as ESTATES IN PERSONAL PROPERTY?

Answer 27

Yes.

Question 28

What are the most common LEASEHOLD ESTATES?

Answer 28

- ESTATE/TENANCY FOR YEARS - ESTATE/TENANCY FROM YEAR TO YEAR - ESTATE/TENANCY AT WILL - ESTATE/ESTATE TENANCY AT SUFFERANCE

Question 29

ESTATE/TENANCY FOR YEARS

Answer 29

Involves a lease that has a definite beginning and definite end date. It DOES NOT automatically renew and can be for any definite duration of time; one day, one week or 20 years and is not terminated by sale of the property

Question 30

ESTATE/TENANCY FROM YEAR TO YEAR

Answer 30

Any TENANCY or LEASE that runs for an INDEFINITE number of time periods; week-to-week, month-to-month, etc. Requires proper notice to terminate and auto-renews if no termination notice is received.

Question 31

ESTATE/TENANCY AT WILL

Answer 31

Exists when a tenant is in lawful possession of real estate with NO SPECIFIED TIME of vacating and NO SPECIFIED PERIOD (month-to-month, week-to-week, etc).

Question 32

When is ESTATE/TENANCY AT WILL terminated?

Answer 32

1. When the property is SOLD. 2. By DEATH of either party. 3. By NOTICE of either party.

Question 33

ESTATE/TENANCY AT SUFFERANCE

Answer 33

Exists when a tenant occupies real estate after his lawful rights have run out.

Question 34

When does an ESTATE/TENANCY AT SUFFERANCE end?

Answer 34

It runs until the TENANT VACATES or the LANDLORD decides to take some action. Termination does not require notice.