Unit 2- Estate Flashcards

Unit 2- Estate Flashcards Reversionary InterestA future estate that the grantor holds while granting a life estate to another person.RemaindermanOne entitled to receive a remainder interest insole estate sometimes in the future.Conventional life estateIs created by grant from the current owner of the fee simple estateOnly kind of estate that is NOT inheritable (estate for Tenant's Own Life Only)If it's anything other than this ONE it is inheritable.ONLY Freehold or Ownership interest which is NOT Inheritable- It will go back to the grantor.The current owner retains a reversionary interest in the property or it names a remainderman that will ultimately receive the fee simple absolute titleIt is limited to the lifetime of the new owner of the life estate (life tenant)Ordinary life estate ends with the death of the person to whom it was grantedIt is

possible to have successive life estatesFor example: a man

wants his children to have ownership of a piece of property, but he wants his mother to be able to own it for as long as she lives, so he deed the property to his mother for her life.The man's mother is the life tenant with her life being the measurement for how long she will own the estate; his children are the remaindermen. When she dies the ownership of the property will automatically transfer to to his children, who will have a fee simple absolute estate.Pur Autre VieFor the life of another. Is a life estate that is measure by the life of a person other than the grantee.SeveraltyThe ownership of real property by only one person or entity; also called sole ownership.

Freehold EstatesFreehold Estates:- (I Own It)Freehold Estates are estates

of indeterminable length of ownership, such as those existing for a lifetime or forever.Freehold estates are passed from grantor (person giving the estate) to grantee (person receiving the estate) via the deed when the title to real estate is conveyed (communicated) Tenancy by the EntiretyA concurrent form of ownership reserved for property owned by spouses. Rights Of survivorship is mandatory; making the surviving spouse owner in severalty immediately upon the death of a spouse.Fee Simple Subject to a Condition Subsequent The estate dictates some action or activity that they new owner must not performThe former owner tenants a right of re-entry, called reversionary right, so that if the condition is broken, the former owner can retake possession of the

property through court proceeding.A fee simple estate with the condition subsequent does not automatically revert to the original owner. They must go through the courts.For

example: A grantor that deed his land with the deed

condition that there will be no sale of alcohol on the premises is a fee simple subject to a condition subsequent . If alcohol is sold on the property the former owner has the right to acquire full ownership of the property. It will be necessary to for the the grantor or the grantor's successors to go to the courts to assert that right. There is no automatic right of reversion.SurvivorshipSurvivorshipSurvivorship is the automatic transfer of one

property owner' interest to others upon death.Remember:

Only transfers to another owner. Not outside of

ownership!One type of ownership has automatic survivorshipHas possible survivorship (JT)Is impossible to have survivorship , pass to heirs.Important legal idea which simplifies matters when somebody diesAvoids probate process other properties go through after an owner's deathDo not confuse survivorship with heirsSurvivors are other owners- not family/heirs Remainder and ReversionThe fee simple owner who creates a life estate mst consider the future ownership of the property after the

termination of the life estate. The future interest may take

one of two formsRemainder interest: The grantor names

someone other than the grantor to reiee title to the property when the life estate terminate. See example where the father provided that his children would inherit once his mother life estate is terminated. The children are the

remainder man.Reversionary interest: The grantor does not

name a remainderman, then the ownership returns to the grantor when the life estate terminates. If the grantor is deceased when the life estate terminates then the property goes to his heirs.