Unit 4: property ownership + types of estates

Estate

Legal interest or right one has in the land; intangible and immeasurable

Tenancy

Possession (rather than ownership) of property

Interest

Right or claim a person has to property

Fee Simple Absolute

Form of real property ownership; fee simple absolute ownership and most common form

Title

Evidence of ownership of a property

Freehold Estates

Ownership for an undetermined length of time

Fee Simple

An inheritable estate

Life Estate

Ownership, possession, and control for someone’s lifetime

Conventional Life Estate

A property interest that lasts for someone’s lifetime and ends when they die

Estate in Reversion

When the original owner takes the property back

Remainderman

The person receiving title upon the death of the life tenant

Vested Remainderman

The one who is named

Contingent Remainderman

The one who is not named, but is identified with descriptors such as “any offspring off…”

Leasehold Estates

An estate for a limited time (ex. renting, leasing)

Estate for years

An estate for a specified time (ex. days, months, years)

Tenancy at will (Estate at will)

An estate for an unknown period of time; either party may terminate the lease by giving notice to the other

Tenancy at sufferance

Occurs when a tenant stays in a property after their lease has ended.

Types of Fee Simple Estates

• Fee Simple Absolute

• Fee Simple Defeasible

Fee Simple Absolute

• Highest possible interest in property

• grants the owner all legal rights w/ no limitations other than public or public restrictions

Fee Simple Defeasible

• The property holder owns the property w/ all legal rights, but subject to a condition

• If the condition is breached, the property may go back to the original owner

Types of Fee Simple Defeasible Estates

• Fee Simple Determinable

• Fee Simple Subject to a Condition Subsequent

Fee Simple Determinable

• An estate granted using a phrase such as “ so long as,” “while,” or “during” a stated condition

• The original owner holds a possibility of reverter, meaning the property automatically returns to them (or their designee) if the condition ends or is violated

Fee Simple Subject to a Condition Subsequent

• An estate granted w/ conditions like “on condition that” or “provided that,” requiring or prohibiting specific actions

• The grantor retains a right of reentry, which can be transferred

• If the condition is violated, the estate doesn’t automatically revert, the holder must take legal action to reclaim it