Chapter 5: Interests in Real Estate

estate at will

An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also referred to as tenancy at will.

Condemnation

The act of taking private property for public use by a political subdivision upon payment to owner of just compensation

life tenant

The holder of a life estate.

encumbrance

anything that affects or limits the fee simple title to value of property

remainderman

A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.

percentage lease

Lease on the property, the rental for which is determined by amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rental.

graduated lease

Lease which provides for a varying rental rate, often based upon future determination; sometimes rent is based upon result of periodical appraisals; used largely in long-term leases.

3 requirements of fee simple absolute

1) alienable - right to transfer or sell property 2) devisable - right to create a will 3) descendible - inheritable

leasehold estate

A tenant's right to occupy real estate during the term of a lease, generally considered to be a personal property interest.

life estate

An estate or interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person.

fee simple determinable

An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.

remainder

An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real estate.

fee simple absolute

An inheritable estate in land providing the greatest interest of any form of title.

periodic estate

An interest in leased property that continues from period to period—week to week, month to month, or year to year.

constructive eviction

Any disturbance of the tenant's possession of the leased premises by the landlord whereby the premises and rendered unfit or unsuitable for the purpose for which they were leased.

estate for years

Lease for a definite period of time

PETE

Police Power, Eminent Domain, Taxation, Escheat

estate at sufferance

Tenant remains on the property, without the landlord's permission, after the lease has expired

reversionary interest

The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.

actual eviction

The removal of a tenant by the landlord because the tenant breached a condition of a lease or another rental contract.

Escheat

The reverting of property to the State when heirs capable of inheriting are lacking.

Police Power

The right of the State to enact laws and enforce them for the order, safety, health, morals and general welfare of the public ex) zoning, building codes

gross lease

a lease in which the lessor pays all costs of operating and maintaining the property and real estate taxes

net lease

a lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments

ground lease

an agreement for the use of land only, sometimes secured by improvements placed on the land by the user

lessor

landlord

lessee

tenant

free simple estate

the greatest interest that one can have in real property - estate that is unqualified, of indefinite duration, free transferable and inheritable

Eminent Domain

the right of government to take private property for public use