interests and estate learning

interests

in real estate is ownership of any combination of the bundle of rights to real property including the right of

posses

use

transfer

encumber

exclude

Undivided interests

is an owners interest in a property in which or more parties share ownership. undivided and indivisible signify that the owners interest,one owner may not lay claim to the northern half of the property for his or her exclusive use

estate in land

interest-holder enjoys the right of possession the party is considered to have this or familiarly an estate

encumbrance

a private interest holder does not have the right to possess, enables a non-owning party to restrict the owners bundle of rights.

public interest

the interest holder is not private such as a government entity and does not have the right to possess, is the right to acquire ownership through the power of eminent domain

police power

are a prime example of public interest or the right of the local or county government to zone,

estate in land

is an interest that includes the right of possession, depending on the length of time one may enjoy the right to possess the estate, the relationships of the parties owning the estate, and specific interests held in the estate, an estate is a freehold or a leasehold estate

freehold estate

the duration of the owners rights cannot be determined the rights may endure for a lifetime for less than a lifetime, ownership of this is commonly equated with ownership of the property where as ownership of a leasehold estate is not so considered because the leaseholders rights are temporary

leasehold estate

is distinguished by its specific duration as represented by the lease term

tenacies

both leasehold and freehold estates are

freehold tenant

the owner of the freehold estate/renter/lessee, is the lease hold tenant

fee simple estate

is the highest form of ownership interest one can acquire in real estate, includes all bundle of rights, tenancy is unlimited with certain exceptions indicated below, also called fee in interest or simple fee, like all estates remain subject to government restrictions and private interests, tow different ones absolute and defeasible

fee tenant

owner of the fee simple interest,

fee simple absolute

is a perpetual estate that is not conditioned by stipulated or restricted uses.

may freely be passed on to heirs

is the most desirable estate that can be obtained in residential real estate most common

fee simple defeasible

this is perpetual provided the usage conforms to stated conditions, essential characteristics, the property must be used for a certain purpose or under certain conditions, if the use changes or if prohibited Conditions are present the estate reverts to the previous grantor of the estate, 2 types are determinable and condition subsequent

Determinable

the deed to the determinable estate states usage limitations, if violated the estate automatically reverts to the grantor or heirs

condition subsequent

if any condition is violated the previous owner may repossess the property, reversion of the estate is not automatic the grantor must re-takr physical possession within a certain timeframe

life estate

that is limited in duration to the life of the owner or other named person, upon the death of the owner or other named individual the estate passes to the original owner or another named party

life tenant

the holder of a life estate

remainderman

the holder of a remainder interest

reversion

no remainder estate is established, the estate reverts to the original owner or the owners heirs this situation the original owner retains a reversionary interest or estate

conventional life estate

is created by grant from a fee simply property owner to the grantee the life tenant, following the termination of the estate rights pass to a remainderman or revert to the previous owner

ordinary life estate

ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder)

pur autre vie

life estate endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman)

legal life estate

is created by state law as opposed to being created by a property owners agreement, provision vary from state to state, is defining and protecting the property right of surviving family members upon the death of the husband and wife

homestead

is ones principal residence, laws protect family members against losing their homes to general creditors attempting to collect on debts

dower

is a wife life estate interest in the husbands property, if the husband dies can claim portions of the dependents property, curtesy, property acquired under dower laws is owned by the surviving spouse for the duration of his or her lifetime

curtesy

is the individual right enjoyed by the husband in a descased wife’s property

estate for years

is a leasehold estate for a definite period of time, with a beginning date and an ending date, the estate for years may endure for any length of term, end of the term the estate terminates with no requirement of notice

holdover lease

if a tenant with a leasehold estate for years remains in possession of the leased premises after lease expiration

holdover tenancy

in the absence of a new lease agreement stating otherwise, becomes a periodic tenancy

Periodic tenancy

in a estate from period to period, this automatically renews for an indefinite period of time subject to timely payment of rent

tenancy at will

the estate at will is this, has no definite expiration date and hence no renewal cycle

estate at sufferance

a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord.