Real Estate Unit 2

estate in land

an ownership defined by the degree, quantity, nature, and extent of an owner’s interest in real property

• not all interests in real estate are estates

estates

must allow possession of the property

• classified by length of time the holder of the estate has possession

freehold estate

lasts for an indeterminable length of time (lifetime/forever)

• Fee Simple Estate: indefinite period passed to heirs

• Life Estate: only for the lifetime of a person and ends when they die (not inheritable)

Fee Simple Estate

indefinite period passed to heirs; highest interest in real estate recognized by law

• Fee Simple Absolute

• Fee Simple Defeasible: Fee Simple Determinable; Fee Simple Subject to a Condition Subsequent

Fee Simple Absolute

entitles its owner to all rights to the property

• intended to run forever

• upon death, property interest passes to:

  • co-owner, person in their will, or person designated by law of intestate succession

Fee Simple Defeasible

subject to the occurrence or nonoccurence of some specified event:

• F.S. Determinable or F.S. Subject to a Condition Subsequent

Fee Simple Determinable

F.S. defeasible that may be inherited

• special limitation: “so long as”, “while”, “during”

• owner retains a possibility of reverter (interest that can be transferred)

• if limitation is violated, holder of p.o.r. reacquires ownership

Fee Simple Subject to a Condition Subsequent

owner gives real estate on condition of ownership

• estate does not automatically terminate upon violation of the condition

• owner has right of reentry but must bring legal action in court

• “on condition that”

Life Estate

only for the lifetime of a person and ends when they die (not inheritable)

• passes to the future owner according to the provisions by which the state was created

  • Conventional Life Estate: Ordinary or Pur Autre Vie

  • Legal Life Estate: Dower, Homestead, or Curtesy

Pur Autre Vie

for the life of another; life estate based on the lifetime of a person other than the life tenant (heirs, etc)

• often created for physically/mentally incapacitated people to create incentive for someone to care for them

• could be more than one

• Future Owner:

  • remainder interest: may name a remainder man as the person to whom the property will pass when the life estate ends

  • reversionary interest: may choose not to name a remainder man so ownership returns to the original owner

Remainder interest

may name a remainder man as the person to whom the property will pass when the life estate ends

Reversionary interest

may choose not to name a remainder man so ownership returns to the original owner

Legal Life Estate

created by state law rather than property owner

• effective automatically when certain events occur

Dower (Legal Life Estate)

life estate of a wife in the real estate of her deceased husband

Curtesy (Legal Life Estate)

life estate of a husband in the real estate of his deceased wife

License

a personal privilege to enter the land of another for a specific purpose

• can be canceled/terminated by the owner of the land

• orally or informally'

• ends with death or sale of land

encroachment

a building, fence, or driveway illegally extends beyond the boundaries of the land

lis pendens

a notice filed in the public record of a pending legal action affecting the title to or possession of property