Real Estate Part 1 Unit 5

A life estate is classified as which of the following? An estate in fee simple A freehold estate A defensible fee An estate for years

A freehold estate

What distinguishes a freehold estate from a leasehold estate?

A leasehold endures only for a specific period of time.

How is a life estate different from a fee simple estate?

A life estate is limited in duration to the life of the owner or other named person. When the life tenant dies, the estate passes to the original owner or another named party. The life tenant does not have the right to pass ownership to his or her heirs.

Which of the following is NOT an example of an interest in real estate? A real estate agent's right to advertise a property for sale A lender's right to file a lien against a property A power company's right to enter a property to service equipment A tenant's right to exclude others

A real estate agent's right to advertise a property for sale

Bob grants his sister Mary an estate for as long as she lives, but her heirs cannot inherit the estate. What kind of estate is it?

An ordinary life estate

Which of the following rights, if any, is NOT included in a fee simple absolute estate? Conduct any and all activities without restriction Give away Grant an easement Exclude others

Conduct any and all activities without restriction

Name the two types of life estates and briefly explain the difference.

Conventional life estate - created by a grant wherein the property owner grants the property to a life tenant Legal life estate - created by state law wherein the rights of surviving family members are protected when the husband or wife dies

In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the grant?

Fee simple defeasible

What is the highest form of ownership interest one can acquire in real estate and why?

Fee simple estate. It includes the complete bundle of rights and the tenancy is unlimited.

Discuss how the right of possession determines what kind of estate or interest a party has in real estate.

If the interest-holder enjoys the right of possession, the estate is an estate in land. If the interest-holder does not have the right of possession, the interest is an encumbrance in the case of a private interest-holder, or some form of public interest in the case of a non-private (i.e., governmental) interest-holder.

Why is a fee simple estate called the highest form of ownership interest?

It includes the complete bundle of rights with virtually unlimited duration.

Which of the following actions is an expression of the public interest known as police power?

Passage of zoning ordinances to control land use

What is the difference between a fee simple determinable estate and a fee simple condition subsequent estate?

Reversion of ownership is automatic in the determinable estate.

The grantor of a life estate may retain a what?

Reversionary estate

Ownership of which of the following is used to define an "interest in real estate?"

The bundle of rights

How does a legal life estate differ from a conventional life estate?

The legal life estate is created by statute while the conventional life estate is created by a grant.

Which of the following is a freehold tenant?

The owner of a freehold estate

What are the essential characteristics of fee simple defeasible estates?

The property must be used for a certain purpose or under certain conditions. If the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate.

Define "undivided interest" in real estate.

When two or more owners share ownership, the interest of an individual owner is undivided and indivisible in the sense that it pertains to a fractional part of the entire estate, not to a physical portion of the real property.

What primarily distinguishes freehold estates from leasehold estates?

Whether an estate in land is a freehold or leasehold estate depends on the length of time the holder may enjoy the right to possess the estate, the relationship of parties owning the estate, and specific interests held in the estate. The duration of the owner's rights in a freehold cannot be determined: they may last for a lifetime, for less than a lifetime, or for generations beyond the owner's lifetime. In a leasehold, they have a specific duration, as represented by the lease term.

How does a fee simple absolute estate differ from a fee simple defeasible estate?

While defeasible estates restrict the property to a certain purpose or to be used under certain conditions, in an absolute estate, the property is not conditioned by stipulated or restricted uses.

The fee simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible carries some restriction on usage. Why are other estates less desirable?

With all other estates in land-- life, leasehold-- the holder of the estate cannot control what happens to the estate in the future. The life estate reverts or is remaindered; the leasehold terminates when the lease expires.

If the duration of an owner's rights in an estate cannot be determined, the owner possesses

a freehold estate.

Homestead, dower and curtsey, and elective share are examples of

a legal life estate.

Fee tail

abolished in all states

A type of freehold estate is Fee Simple. Fee Defeasible. Life Estate. all of the above.

all of the above.

Fee simple estate

also "fee"; most common form of estate; not limited by one's lifetime fee simple absolute: highest form of ownership interest defeasible: can revert to previous owner for violation of conditions

If a life tenant damages or misuses the property, it is known as

an act of waste.

An interest in real estate that includes the right to possess is considered

an estate in land.

If a party has an interest in real estate that includes the right of possession, the party owns

an estate in land.

Once the life tenant dies, the life estate portion reverts back to whom?

an interest in real estate.

Ownership of some combination of the bundle of rights defines

an interest in real estate.

Interests

any combination of bundle of rights estates, encumbrances, police powers

To own an interest in real estate, a person must own

any combination of the bundle of rights

Legal life estate

automatic creation of estate through operation of law designed to protect family survivors homestead: rights to one's principal residence laws protect homestead from certain creditors dower and curtesy: a life estate interest of a widow(er) in the real property elective share: right to claim deceased spouse's property in lieu of will

The distinguishing feature of a leasehold estate is

duration limited by a lease term.

States that do not have dower and curtsey usually have either community property laws or

elective share.

Life estate

fee estate passes to another upon death of a named party remainder: interest of a named party to receive estate after holder's death reversion: interest of previous owner to receive estate after holder's death

Of the two kinds of fee simple estate, the kind that is a perpetual estate with no usage restrictions is the

fee simple absolute.

If an estate includes the complete bundle of rights and unlimited duration of tenancy, it is a

fee simple estate.

f an estate includes the complete bundle of rights and unlimited duration of tenancy, it is a

fee simple estate.

Conventional life estate

full ownership interest, limited to lifetime of life tenant or another named party created by agreements between parties ordinary: on death of life tenant, passes to remainderman or previous owner pur autre vie: on death of another; passes to remainderman or previous owner

FREEHOLD ESTATES

implies "ownership" in contrast to leasehold

Estates in land

include right of possession; also called tenancies leaseholds: of limited duration freeholds: duration is not necessarily limited

Life tenant responsibilities

life tenant has all rights of ownership for owner's life must protect the property for remainderman or revisionary interest if life tenant damages or misuses property, known as act of waste

Unlike a determinable estate, the grantor of a condition subsequent estate

must repossess the property within a limited time frame if restrictions are violated.

Community property

property owned by two parties requires consent of both parties to transfer or encumber