Unit 5: Types of Real Estate Ownership Lesson 1: Freehold vs.

Unit 5: Types of Real Estate Ownership Lesson 1: Freehold vs.Leasehold Estates Flashcards Fee on condition (or fee simple subject to a condition

subsequent) estate:

Another type of fee simple defeasible estate that is also inheritable and is recognizablewhen the words "but if" appear in the deed. The estate continues unless a specific event occurs, in which caseownership may revert to the owner or the owner's successors.Such termination and recovery of ownershipmust be achieved through a court order.She could sign a lease for a period of 12 months, establishing a(n) estate for years.

Remainderman:A life estate with remainder interests refers to asituation in

which a remainderman named by the owner when forming the estate receives title to the property upon the death of the life tenant.

Remainder interests:The remainderman'sright to fee simple title upon the death

of the life tenant.

Leasehold estate:Refers to tenancy and provides an interest in real estate for

a limited time.Non-freehold estate means that a person is leasing the land for a temporary period of time and has no ownership stake in the property. Non-freehold estates are more commonly known asleaseholdswhich have a definite duration of a lease. There are four main types of

non-freehold estate leasing agreements:

Reversionary interest:A life estate in which the property title reverts to the owner upon the death of the life tenant

Escheat:The state's power to claim property when an owner dies

without a will and without heirs or creditors.At the end of all this, she could just refuse to leave the property when her lease terminates, creating a(n estate at sufferance Sarah inherited Hank's estate but failed to pay property taxes on the condominium, causing her eventual loss of the condo.Act of waste Fee simple defeasible (or qualified fee) estate: Thedefeasible fee estate, or the fee simple defeasible, refers to certain conditions in freehold estate ownership.Conditions can restrict an owner of this property to use it only in a certain way. If the owner uses the property any other way, their ownership can be terminated. A fee simple defeasible is an estate that will end if a certain condition or contingency is met. This means that laws can determine what can be done, or not be done, on that property. For example, if someone can only use their property for fitness

reasons, but they sell cars instead, then the owner can face legal ramifications

Dower:A form of legal life estate that refers to a wife's interest in

the real estate owned by her deceased husband. Dower isn't recognized in all states.Papa conveyed 20 acres of land to Teddy Jr. for life. Upon Teddy Jr.'s death, the land will go back to Papa.Reversionary interest Upon Carolyn's death, Cooper will take full ownership of the farm.Curtesy

Pur autre vie life estate:Created by a property owner who grants an estate to

someone for the duration of another individual's life.Alife estate pur autre vieis a type of freehold tenant agreement.While a life estate ends upon the death of the grantee, a life estate pur autre vie ends upon the death of a person other than the grantee.Property possessed for someone's lifetime Life estate Or she could establish a(n) ------ by signing a lease for an unspecified period of time, with the stipulation that either she or the landlord may terminate the lease by giving notice to the other.estate at will There are four main types of non-freehold estate leasing

agreements:

Estate for years -A tenant pays rent for a certain number of years as agreed upon with the landlord.Estate from year to year -This can be known as periodic tenancy, and the lease agreement renews once a year. Either the tenant or landlord can terminate the agreement by giving notice.Tenancy at will -No written or legal contract between tenant and landlord exist in this type of agreement and there is no fixed end term of tenant usage. This is usually known as a month-to-month lease and can be arranged by a verbal agreement.Tenancy at sufferance -This occurs when a tenant is on a property exceeding the agreed upon time or after a contract's date has expired. The landlord no longer grants access to the property to the tenant and the tenant can face legal or financial consequences.fee simple absoluterefers to a freehold interest being entirely owned and unrestricted by the freehold estate owner. A fee simple absolute grants the owner the right to use the land how they see fit and have the least amount of restrictions placed on it compared to other types of freehold ownership.Tom Jr. can keep the property his parents transferred to him as long as he remains unmarried.Fee simple determinable Fee simple determinable estate:A type of fee simple defeasible estate, and an inheritable freehold estate, wherethe title remains with the new owneras long as theconditions of ownership are being met.If thebuyer commits a specific prohibited act,the title to the property mayautomaticallybe returned to the owner or the owner's successors.

Curtesy:A form of legal life estate that refers to a husband's interest

in the real estate owned by his deceased wife. Curtesy isn't recognized in all states.The main characteristics of the fee simple absolute are:If the owner continues to pay taxes, insurance, and is law-abiding the owner and their inherited heirs can own the property indefinitely.The owner can sell or transfer the property to whomever and whenever.The property is part of

the owner's estate and is passed down to the owner's heirs.There are three main types of freehold estates fee simple absolute, fee simple defeasible, and life estate

Act of waste:An abuse of a property by a person who holds interest

through a life estate