Chapter 3: Interests and Estates

How is a conventional life estate created?

A fee simple owner grants the life estate to a life tenant.

What are the different types of leasehold estates?

Estate for years, periodic estate, estate at will, tenancy at sufferance

What distinguishes a freehold estate from a leasehold estate?

a leasehold endures only for a specific period of time

What is tenancy (estate) for years?

a leasehold estate for a definite period of time, with a beginning date and an ending date, may endure for any length of term

What is a curtesy?

a life estate created for the owner of record and wills the property to another

What is a dower?

a life estate created for the wife when the husband is the owner of record and wills the property to another

What is a fee simple absolute?

a perpetual estate that is not conditioned by stipulated or restricted uses, the highest form of ownership interest

Dower refers to

a wife's life estate interest in her husband's property

Which of the following is true of a homestead? a. a homestead interest cannot be conveyed by one spouse b. a homestead interest cannot be passed to the children of the head of household c. a homestead interest is a form of a conventional life estate d. a homestead is a primary or secondary residence occupied by a family

a. a homestead interest cannot be conveyed by one spouse

The highest form of ownership interest one can acquire in real estate is the

absolute fee simple estate

What is an indefeasible fee estate?

also called "absolute", has unconditional ownership

What is interest?

an interest in real estate is ownership of any combination of the bundle of rights to real property

What is a remainder?

any named party other than the grantor receives estate after holder's death

Which of the following is an illustration of the legal concept o elective share? a. a surviving spouse places a lien on a debtor's property b. a widow who was excluded from a will makes a claim to a portion of the couple's principal residence c. a spouse who loses her home because of her husband's gambling debt sues in court for exemption from the debt d. a widower whose spouse died without a will sues to change the provisions of the will

b. a widow who was excluded from a will makes a claim to a portion of the couple's principal residence

What is a conventional life estate?

created by grant from a fee simple property owner to the grantee, the life tenant. Has full ownership interest, limited to life time of life tenant, created by agreement between parties, title passes upon death of named properties.

Freeholds have..

duration that cannot be determined

What is private non-possessory interest?

encumbrances

What is an ordinary life estate?

ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder)

What is a pur autre vie?

endures over the life time of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman)

A one-year lease on a house has expired, but the tenant continues sending monthly rent checks to the owner, and the owner accepts them. What kind of leasehold estate exists?

estate from period to period

What is possessory interest?

estates in land, or estates

What is an estate tenancy at will?

has no definite expiration date and hence no "renewal" cycle, also called estate at will

Encumbrances and police powers are

interests that do not include possession

What is a life estate?

is limited in duration to the life of the owner or other named person. Upon the death of the owner or other named individual, the estate passes to the original owner or another named party.

What is a legal life estate?

it is created by state law as opposed to being created by a property owner's agreement

Which of the following life estates is created by someone other than the owner? a. conventional life estate b. ordinary life estate c. legal life estate d. community property life estate

legal life estate

What is a dower and curtesy?

life estate interest of widow(er)

Leaseholds have..

limited duration

An interest in real estate is best defined as ownership of

one or more of the bundle f rights to real property

What is a homestead?

one's principal residence

What is public non-possessory interest?

public interests

A defeasible fee estate can..

reverts to previous owner for violation of conditions--usage conforms to stated conditions

What is an elective share?

right to claim deceased spouse's property in lieu of will

What is a fee simple determinable?

states usage limitations in the deed, if violated reverts back to grantor automatically

What is tenancy (estate) at sufferance?

tenancy against landlord's will and without an agreement, usually such an estate involves a tenant who fails to vacate at the expiration of the lease, continuing occupancy without any right to do so

The distinguishing feature of a defeasible fee simple estate is that

the estate may revert to a grantor or heirs if the prescribed use changes

What is a life tenant?

the holder of a life estate

What is a fee simple estate?

the most common estate, not limited by one's lifetime, passes to heirs upon owner's death

Upon the death of the owner, a life estate passes to

the original owner or other stated person

What is a reversion?

the previous owner (grantor) receives estate after holder's death

What is a fee simple subject to condition subsequent?

the previous owner may repossess the property but the reversion of the property is not automatic, the grantor must retake physical possession within a certain time frame

What distinguishes a pur autre vie life estate from an ordinary life estate?

the pur autre vie endures only for the life tie of a person other than the grantee

What is an estate from period-to-period?

the tenancy period automatically renews for an indefinite period of time, subject to timely payment of rent, also called period tenancy

What is constructive eviction?

when owner fails to provide essential services making the property uninhabitable forcing the tenant to vacate, the tenant has legal rights to sue as if the owner told them to leave without cause