10 Concepts to Know

Real Property

Immovable

(goes with the Real Property)

Personal Property

Movable

(goes with the person).

Example: LEASE, goes with the person

Freehold (Type of Estate in Property)

Owning property indefinitely, granting you full rights to use, sell, or pass it down.

THREE TYPES:

• Fee Simple Absolute

• Fee Simple Defeasible

• Life Estate

Fee Simple Absolute

Type of Freehold Estate.

Highest degree of ownership. Greatest interest in a parcel. Simply a fee (most common).

Not absolute as there are always Encumbrances (Taxes, Eminent Domain, Police Power, Escheat).

Cannot be defeated by previous owner / heirs.

Fee Simple Defeasible

Type of Freehold Estate.

Can lose estate if conditions are violated

TWO TYPES:

•Fee Simple Determinable: Automatically reverts to original owner. Durational language, “as long as land is used for a park”

•Fee Simple Subject to a Condition Subsequent: Doest Not Automatically revert to original owner. “On the condition, No alcohol to be served”

Life Estate

Type of Freehold Estate.

Property is owned based upon someone’s life.

Owner is the life tenant, who Cannot leave a property to anyone in their will. Upon death, ownership transfers to remainder-man (beneficiary).

Estate in Reverse means estate goes back to the original grantor.

Less Than Freehold (Type of Estate in Property)

Limited amount of time (Leases / Rental)

FOUR TYPES:

• Estate for Years

• Periodic Tenancy

• Estate at Will

• Estate at Sufferance

Estate for Years (aka Tenancy For Years)

Type of Less Than Freehold Estate.

Defined period of time. No proper notice.

“May 1st to August 8th”

example: Summer Rental.

Periodic Tenancy

Type of Less Than Freehold Estate.

Recurring timeframe. Proper notice

Years to Years. Months to Months. Weeks to Weeks.

Estate at Will

Type of Less Than Freehold Estate.

Can end at ANY time. Term is indefinite. Not Allowed in many states.

Estate at Sufferance (Tenancy at Sufferance)

Type of Less Than Freehold Estate.

Staying too long. “Landlord is suffering”.

NOT a form of trespassing.

Types of Government Powers

P.E.T.E

4 TYPES:

• Police Power

• Eminent Domain

• Taxation

•. Escheat

Police Power

Type of Government Power

Property is Not taken from you, rather they tell you how to use it

Example: Building Code, Rent Control, Zoning

Eminent Domain

Type of Government Power.

Property is taken from you and Compensate you through a process known as Condemnation

Condemnation

Process during Eminent Domain, government takes property but compensates you.

Condemed = can’t use it anymore

Inverse Condemnation

is what you file when the government takes your property without compensation or unfair compensation

Taxation

Type of Government Power.

Gotta pay the man when you own property… Unpaid property taxes result in a:

Specific Lien - you can lose your property

General lien - your items can be seized to pay your debts