Real Estate Law Test 2

Estate

Legally anything someone owns minus liabilities

Freehold estate

An indefinite estate for life or in fee

In fee

Most complete form of private real estate ownership. It grants the owner the full bundle of rights to possess, use, control, sell, lease, mortgage, or pass the property to heirs.

Non-freehold or Leasehold Estates

Ownership interest in land generally of a fixed or determinable duration

Fee Simple Absolute

An estate limited absolutely to its owners and their heirs that assigns forever without limitation or condition

Ex: In a will, “House goes to Jones”

Fee Simple Defeasible

A fee estate that may end upon the happening of a specified event

Restraint on Alienation

Provision in an instrument of conveyance that prohibits the grantee from transferring property

Life Estate

Duration is measured by the life of a person

Not inheritable

To Bob for life

Pur autre vie

Measure by life of other

To Bob for all of Dan’s life

Reversion

Future interest retained by an original owner (the grantor) after they convey a temporary or lesser estate—such as a life estate or a leasehold—to another person

Example: A landlord rents a retail storefront to a business for a fixed 5-year term. The landlord retains a reversionary interest during those 5 years; when the lease ends, the right of possession reverts to the landlord.

"O conveys Blackacre to A for life." When A dies, the property reverts back to O (the grantor).

Remainder

A future interest created in favor of a party other than the grantor

Person created for is the “remainderman”

Generally follows a life estate

"O conveys Blackacre to A for life, then to B." When A dies, the property goes to B.

Vested Remainder

Future interest where the remainderman has an absolute right to a possessory interest at the end of prior interest

unconditional right to receive property at some point in the future

To Bob and then to Sue

Contingent Remainder

Future interest that depends on the occurrence of an uncertain event

To Sue for life and then to Don, but only if Don gets married before Opel’s death

Estate Disputes: Repairs

What is a life tenant’s duty to keep property in repair?

Life tenant who receives income, rents, or profits from the real estate has a duty to make ordinary repairs

Painting, replacing windows, etc

Estate Disputes: Tenant’s Use of Property

A life tenant may act as the fee simple owner if they were on the land but they are limited in their ability to diminish the market value of the remainder/reversion

Right of Estovers

Life tenant is generally entitled to cut/use real property such as timber to repair structures, fences, or create fuel

Waste

A destructive use of real property by one in rightful possession

Can use the way it was meant to be used