Freehold vs. Leasehold

Curtesy

A husband's interest in the real estate owned by his deceased wife; a form of legal life estate

Leasehold estates

An estate for a limited time (e.g., renting, leasing)

Life estates

Ownership, possession and control for someone's lifetime

Homestead

A type of estate that gives the owner special rights in property used as a family home (not valid in all states) ex: Bob is married and owns the family home. Upon Bob's death, the property may receive certain protections (depending on the state).

Fee Simple on Condition Subsequent

A type of fee simple defeasible, and also known as a fee on condition, this is created when an estate is given on the condition that the owner does or doesn't take a specific action. The grantor has the right of reentry if the condition is violated. The estate doesn't automatically revert to the original owner; it may require legal action on the part of the original owner. ex: Tom Jr. can own the property transferred by his parents, but if he develops the land his ownership will end.

Fee Simple Determinable

A type of fee simple defeasible, this ends automatically when the stated event or condition occurs. The original owner retains a possibility of reversion. Property is retained "while," "during," or "so long as" the condition occurs; this is the language most often seen in the deed.

Dower

A wife's interest in the real estate owned by her deceased husband; a form of legal life estate

Act of waste

Abuse of a property by a person who holds possession through a life estate ex: Sarah inherited Hank's estate, but failed to pay property taxes on the condominium.

Estate for years

An estate for a specified time: (e.g., days, months, years) ex: You sign a lease for a period of 12 months.

Estate at will (a.k.a. tenancy at will)

An estate for an unknown period of time; either party may terminate the lease by giving notice to the other.

Periodic estate

An estate that renews itself automatically at the end of each lease period

Fee simple

An inheritable estate

Qualified fee

An inheritable freehold estate that is defeasible (the grantor can terminate the title). For example, a parent could transfer property to a child as long as the child remained unmarried.

Remainder interests

Fee simple present interest in conjunction with receipt of title upon the death of the life tenant ex: Papa conveyed 20 acres of land to Teddy Jr. for life. Upon Teddy Jr.'s death the land will be conveyed to the local elementary school.

Freehold estates

Ownership for an undetermined length of time; an example is home ownership.

Fee simple absolute

Provides the most complete form of ownership and bundle of rights in real property

Reversionary interest

Right of repossession of the property by the owner after the end of the life estate ex: Papa conveyed 20 acres of land to Teddy Jr. for life. Upon Teddy Jr.'s death the land will go back to Papa.

Remainderman

The person receiving title upon the death of the life tenant ex: A local elementary school will receive title to 20 acres of land upon the death of the life tenant, Teddy Jr. The elementary school is called the Remainderman

Escheat

The power of the state to claim property when the owner dies without a will and without heirs or creditors ex: Mr. Smith passed away without a will. Attempts to locate heirs or creditors have come up empty, therefore, the state has claimed his property.

Fee Simple Defeasible

With a fee simple defeasible estate, the property holder owns the property with all legal rights, but subject to a condition. If the condition is breached, the property may go back to the original owner.

periodic estate

You sign a lease for a period of 12 months, at the end of which the lease is renewed.

estate at sufferance

Your lease has terminated, but you refuse to leave the property.