Estates, Tenancies & Leasehold Estates

Freehold Estate

Ownership interests in real property

Qualified fee estate/fee simple conditional

Subject to a condition or trigger event, property reverts back to grantor or heirs

Estate Pour Autre Vie

Estate for the life of another, gives someone the right to use land for as long as the life of another person

Remainderman

Party who holds the remainder (future) interest

Vested remainder

When remainderman is guaranteed ownership of the property at some future time

Tenancy for years

Specific dates or years, must have start and end dates

Periodic tenancy

Specific amount of time, repeated, with no end date

Tenancy at will

Tenant stays until either landlord or tenant gives notice

Tenancy in Common (TC)

Two or more owners hold undivided interests in the whole property

Community Property

Property acquired during marriage is community property belonging equally to both parties

Cooperative

Co-op owner owns share of stock in a corporation that owns the real property

Timeshares

Owner has fee simple absolute estate for the property for specified time during each year

Gross Lease (Full Service Lease)

Tenant pays rent and landlord pays all other expenses

Triple Net Lease

Tenant pays property taxes, insurance, maintenance, and utilities

Ground Lease

Tenant has the right to develop the property during the lease period, improvements revert to the landowner after lease expires

Grantor

Party who transfers real property

Grantee

Party who receives the interest

Lessor

Landlord

Lessee

Tenant

Fee simple absolute estate

Most complete bundle of rights, only restricted by government or by prior owners, alienable, devisable, descendible

Life estate

Full rights to use and enjoy property for life, terminates upon the death of the named person

Remainder

Future interest in the land

Contingent remainder

Future interest with conditions

Tenancy at Sufferance

Tenant fails to vacate

Joint Tenancy

Two or more owners hold equal undivided interests in the whole with right of survivorship

Tenancy by the Entirety (TE)

Joint tenancy with right of survivorship between married persons

Condominium

Condo owners have the title to the unit, own common areas as tenants in common

Absolute Net Lease

Tenant covers all property expenses, including structural repairs