Unit 4 (Estates and Interest)

• Qualified fee estate (freehold

• is real property that comes with terms of use for specific purpose, if broken, ownership reverts back to original party

• Real property

• goes down to earths core and upwards into sky, things attached by nature and people, as well as interests, benefits, and rights included in ownership

• Real estate

• goes down to earth center and upwards into sky, things permanently attached to it by nature and people

• Riparian rights

• ownership in land that border a stream, river, or lake.

• Personal property is

• movable and mobile

• A fixture is

• personal property that has been attached to land or building permanently and becomes real estate (kitchen cabinets, sinks, etc)

• Trade fixture are

• tenant owned attachments to rented space for business purposes (personal property of tenant)

• Economic characteristics include

• relative scarcity, improvements, permanence of investments, area preference

• Estate in land

• is ownership of real property

• Non free hold estates involve

• leaseholds like leased property and rentals

• Free hold estates involve

ownership in property (indefinite)

• 4 free hold estates in New York are

• fee simple, qualified fee, fee on condition, and life estates (ends at death)

• Tenancy at will (non freehold)

is rental agreement without lease terms or term of payment

• Estate at sufferance (non freehold)

• is tenant who’s overstaying terms after lease expiration and without landlord consent (hold over tenant)

• Estate for years (non freehold)

• is lease agreement for a specified period of time (start and end date)

• Fee simple (freehold)

• is full ownership and rights to property and can be passed to heirs

• Qualified fee estate (freehold)

• is real property that comes with terms of use for specific purpose, if broken, ownership reverts back to original party

• Fee on condition (freehold)

• is real property that has terms fro certain purchase, if broken, other party have right to file a lawsuit to recover property

• Life estate end after

• life tenant death, original owner can pass down estate, but life tenant cannot

• Remainder interest

• Mr h, leaves house for Mrs. H for her lifetime, but passes to son (jr) of his first marriage after death of Mrs. H. Jr owns remainder interest and is known as remainderman

• Reversionary interest

• Mr H gives home to Mr C lifetime reverting back to Mr H or his heirs after death. Mr H owns reversionary interest

• Homestead means

• ownership in primary residence by owner occupant

• Fee simple may be held in

• severalty (title owner ship is one person, and passes to owners heirs), in co ownership (title held by two or more people), or trust (where title is held by a third person for benefit of another)

• Tenant in common owns

• a fraction of property, if no fractions are stated in contract each owner owns equal amount (can be passed to heirs)

• Joint tenancy allows property to be owned by

• two or more people (death of one join tenant means his share goes to the other join tenants automatically by right of survivorship)

• Suit to Partition the land is

• a legal way to end co ownership when parties don’t agree

• Tenancy by entirety allows for

• married couple to have right of survivorship but no right to partition (must be married when received)

• Trust would be created to

• transfer wealth to next generation

• Trust can be created during

• owners life (living trust) or after owners death in will (testamentary trust)

• Three parties to a trust are

• trustor (creates the trust), a trustee (manages trust), and beneficiaries (receives benefits)

• Business organization are categorized as

• partnerships, corporations, syndicates, and limited liability companies

• General partnership involves

• all partners to be engaged in the business, all partners share joint and several liability which means each partner is responsible fro all liabilities

• A limited partnership involves

• both general and limited partners, with limited parters not having to be involved with day to day operations but can still be liable for the business losses (Think investors) always must be one general partner

• Corporation is

• a legal person that can own real estate, lives forever

Different type of corporations are

• S corp has owners pay taxes

• C corp has corporation pays taxes

• LLC (limited liability company)

• combines limited liability and tax advantages, has members, owners pay the taxes

• Syndicate involves

• two or more people or firms to tackle one or more business projects (can be organized into a lot of ownership forms)

• Join venture involves

• two or more people to tackle a single project

• The 4 unities required to make a join tenancy are

• unity of time (all joint tenants get their share at same time), unity of title (all joint tenants acquire their share in same deed), unity of interest (all joint tenants hold equal ownership), unity of possession (all joint tenants hold undivided interest in whole property