Principles of Real Estate: Chapters 5 and 6
What is an estate?
An estate in land determines the legally recognized interest the person has in the real property. There are two main types of estates in real estate
Freehold estate- is owner for an indefinite duration. Time is uncertain. (you own the land)
There are three types of Freehold estates.
1.Fee simple absolute
2.Fee simple defeasible
Fee simple absolute: gives the real estate holder complete rights to the land with absolute ownership. The owner in fee simple title can sell it, will it, give it away or retain possession for as long as the person desires.
Fee simple defeasible: limits the estate holder to the terms set forth by the grantor. (Grantor- seller- Grantee/ buyer)
The deed will specifically make reference to the fact that the estate is conditional “as long as” the land is used for the purpose stated and the grantor has qualified the estate being granted. If fee simple defeasible terminates conditions property automatically reverts back to remainderman. Whereas in Fee simple to a condition subsequent, original owners must go to court to get it back.
Life estates- for the term of their natural life, parents give the title to the kids but still have ownership. Can’t significantly alter property
Can’t waste property
And the person that the property goes to is the remainderman.
Non Free hold Estate- gives a possessory interest in real property for a definite period of time. (You rent the land) There are four types of Non free hold estates.
1.Estate for years- ends when the agreement says it ends in the contract 2.Periodic estate- no written lease- month to month. Automatic renewal 3.Estate of will- “ you can use this until I tell you or you don’t want to anymore” 4.Tenancy of sufferance- the tenant remains in possession of the leased premises after expiration of the lease. Leasor/Landlord retains ownership
Leasee/ tenant gets the...