Ownership basics Flashcards

Ownership basics Flashcards What is a defeasible fee?has some condition or covenant involved that limits the extent of one's ownership. This is also an inheritable estate. Forms of a qualified or defeasible (defeatable) fee

include:Fee Simple DeterminableFee Simple with a

Condition Subsequent How does a grantor create a series of life estates with the title to be vested fee simple to the last individual in the sequence?Rose grants a life estate to Smith, which is to be transferred to Thomas when Smith dies. When Thomas dies it is to go to Wilson and be vested fee simple. In this

case:Rose is the grantor, but not a remainderman.b. Smith

is the initial holder of the life estate.c. Thomas and Wilson are remaindermen.d. Wilson will receive fee simple title after Smith and Thomas die. The grantor no longer has a right of reversion.What is possession in regards to the bundle of sticks?These rights include the right to enter and occupy the property, to invite others to enter and/or occupy, and the right to exclude others (no trespassing).What is a remainderman?The person who will receive the life estate when the current holder of the life estate dies. There can be more than one of these.What is disposition in regards to the bundle of sticks?The right to keep the property, sell it, lease it, give it away, etc.What is a Life Estate Pur Autre´ Vie (on another's life)?A life estate pur autre´ vie is inheritable as long as the person on whose life it is based is still alive.The life estate is based on the life of someone other than the holder of the life estate.In regards to life estates what does the term waste mean?cannot damage or neglect the property and thereby diminish its value for when it is passed on to the remainderman.Don Meyers has the legal right to act as though he owns a property for the rest of his life, even though the property is

actually owned by his father Ron Meyers. Don is a:A.

Holder of a life estateB. Holder of a life estate pur autre vieC. RemaindermanD. Holder of Rights of Reversion Holder of a life estate pur autre vie What is freehold (ownership) estates?If an individual has a freehold interest, he has an ownership interest in the property, but may or may not own it free and clear. The word ownership is a synonym for the word freehold. There are various forms of freehold interests.

They include:Fee SimpleFee estateFee simple absolute

What is a Fee simple?/Fee simple absolute/fee estateThis is the most complete form of ownership an individual can hold under the law. A fee simple estate is inheritable.

Fee Simple is also known as:

What is a fee simple witha condition subsequent? Is the same as Fee Simple Determinable except that there is no automatic right of reversion. If the condition is violated, the grantor may retake the property if the

conveyance grants him/her the right to do soExample: "A

grants the property to B, but if the property is ever used for commercial purposes, then A has a right of reentry." The word or phrase that most accurately describes the

word "Freehold" is:A. Owning free and clearB.

OwnershipC. Life EstateD. Pur Autre Vie Owning free and clear What is the bundle of rights?When real property is purchased, in addition to the physical property, rights of ownership are conveyed with the deed."bundle of sticks") contains 11 property rights What is quiet enjoyment in regards to the bundle of sticks?The right of an owner or lessee to uninterrupted legal use of the property without interference or undue disturbance caused by defective title.Previous owner cant come in and say they have rights or claims to the property.Can be the buyer or tenants.What is "use or control" in regards to the bundle of sticks?These rights involve the purposes for which the property is used such as living, stores, farms, mining, or no use at all.Can fee simple absolute/fee simple/fee estate be inherited?yes What is a Fee Simple with a Condition Precedent:? Title will not fully transfer to the grantee until a condition is met, such as a child reaching legal age.Thus, the grantee holds a future interest-they will own the property in the

future once the condition is satisfied. Example: "A grants

the property to B 'if B graduates from college.'" Which of the following is NOT a part of the Bundle of Rights?A. UseB. DispositionC. PossessionD. Interest interest How does a grantor create a series of life estates?Blackmore grants a life estate to Abel which is to be transferred to Baker when Abel dies.Abel is the holder of the life estate.Baker is a remaindermanThe reversionary rights, if any, of the grantor are exercised after the death of both Abel and Baker.What are some important rules for Life Estate Pur Autre´ Vie?A basic life estate can be conveyed, sold, or gifted, but not inherited. If the life estate holder sells the life estate, the new owner owns the life estate pur autre' vie.A life estate pur autre' vie can be conveyed, sold, gifted, or inherited as long as the governing life is still alive.Unless a remainderman is created by the grantor, the grantor holds a reversionary interest, which can be inherited if the grantor pre-deceases the governing life.What is a life estate?The life estate is a non-inheritable estate.

What are future interests?Fee Simple with a Condition Precedent:

Can a life estate be used as a collaterall on a loan if all the parties(grantor,grantee,lender) agree?yeshas to be in writing and all parties must agree and consent to the lender receiving the property fee simple upon default.can be mortgaged, but the

reversion/remainder rights will be lost and the property will be foreclosed on by the lender who will then receive the property in fee simple.

Does the holder of a life estate have the right to sell/lease/encuber his interest in the property?yes they canBUT they cannot will it out What is a fee simple determinable?Exists when there is a condition in effect after the conveyance of the property to the grantee. If that condition is violated, such as changing the defined use of the property, the property automatically reverts back to the original owner by right of reversion."A grants the property to B so long as the property is used as a school." within a life estate can the holder convey an interest that extends beyond their life?noif the holder of a life estate were to give a tenant a three year lease on his life estate, and then the holder of the life estate died before the lease expired, the lease would automatically terminate What is the right of reversion?Future interest in real estate created by the grantor that provides for the property to revert to the grantor upon expiration of the interest.