Chapter 9 real estate

two types of life estate

1. Conventional life estate (most common form of life state in Tennessee, created by the property owner who grants the property to an individual for a lifetime) 2. Legal life estate (created by law, rather than by the owner, such as a marital life estate or a homestead life estate)

conventional life estate can be two things

1. Ordinary with remainder or reversion (after the life estate holder dies the property reverts to the original owner (reversion), or ownership rights are transfer to another person that the original owner has named (remainder man). at the end of a life estate, the revisionary owner or remainder man hold a fee simple estate) 2. Pur Autre Vie with Remainder or reversion

two types of fee simple defeasible estate?

1. Special limitation with possible reverter (With this fee simple defeasible estate, once the trigger occurs, the property automatically reverts to the original owner.) 2. Condition subsequent with right of re-entry (This type of fee simple defeasible estate is one in which the estate doesn't end automatically if the stated event or condition occurs, but the grantor can reclaim ownership by taking action.)

types of leasehold estates

1. estate for years (A lease that ends on a specific date, survives the death of either party, and is inheritable) 2. estate at will - A lease without an established time period that may be terminated at will by either party, and isn't inheritable 3. estate of sufferance (one in which a tenant continues to occupy property after lawful authority has expired) 4. periodic estate- A lease that ends on a specific date, but will be automatically renewed for another negotiated time period

life estate

doesn't convey the entire bundle of rights. Owners hold the estate for only their lifetime, or sometimes for another named individual's lifetime

what type of leasehold estate? it simply means definite duration, with a specific start and stop date, and can be for any length of time, even days or weeks.

estate for years

What type of fee simple estate contains a condition of ownership; if that condition is violated or not met, the ownership will revert to the original owner, or to a named third party?

fee simple defeasible

Which type of fee simple estate provides ownership but with conditions?

fee simple defeasible

Nelson purchased a condominium. He has all rights of ownership, including the right to sell and to convey his property to heirs when he dies. What type of estate is this?

free simple absolute

what type of estate is created by a contract between the owner of the real estate (known as the lessor) and a tenant (known as the lessee).?

leasehold estates

what type of life estate created by law, rather than by the owner, such as a marital life estate or a homestead life estate?

legal life estate

The tenant is the ______ in a lease agreement.

lesse

after the life estate holder dies the property reverts to the original owner (reversion), or ownership rights are transfer to another person that the original owner has named (remainder man). at the end of a life estate, the revisionary owner or remainder man hold a fee simple estate?

ordinary with remainder or reversion

A lease that ends on a specific date, but will be automatically renewed for another negotiated time period

periodic estate

what type of leasehold estate is this an example of? Fred has a barber shop in a commercial building. He has a one-year lease that automatically renews unless either Fred or the landlord terminates. His lease is inheritable. If Fred or the owner dies, the lease is still in effect through its current period.

periodic estate

"for another's life"

pur autre vie

jeann gives an acre of land "to Monet for the life of Phillipe." Monet has a life estate pur autre vie, which is measured by Phillipe's life. She has an interest in the land that lasts as long as Phillipe lives, and her interest will end when Phillipe dies. Note that if Monet dies before Phillipe, her life estate continues, and her heirs may benefit from it for as long as Phillipe continues to live? what is this an example of?

pur autre vie with remainder or reversion

the holder of this estate remains in possession with all the rights of a life estate until the death of another person who was named when the life estate was established

pur autre vie with remainder or reversion

Nettie granted her home to her son James, as long as he doesn't bring alcohol into the house. If he brings any alcohol into the house, the property title will automatically revert to Nellie. What type of estate is this?

special limitation with possible reverter

With this fee simple defeasible estate, once the trigger occurs, the property automatically reverts to the original owner.

special limitation with possible reverter

what type of fee simple defeasible is this an example of? The Millers gave their son, Steve, the family property, provided he doesn't marry his girlfriend. If he marries her, the property reverts back to them.

special limitation with possible reverter

two types of fee simple estates

1. fee simple absolute (most common, complete ownership) 2. fee simple defesable(contains a condition of ownership; if that condition is violated or not met, the ownership will revert to the original owner, or to a named third party)

two types of freehold estates

1. fee simple estate (conveys the most rights possible—the whole bundle of rights. Fee simple conveys all the rights of ownership including use, disposition, and inheritability. This is the type of ownership you're likely most familiar with because most titles are held as fee simple estates.) 2. life estate- doesn't convey the entire bundle of rights. Owners hold the estate for only their lifetime, or sometimes for another named individual's lifetime

2 types of estates in land

1. freehold estates (conveys possession, control, and title (ownership), and has no ending date specified) 2. leasehold estates

reservation

An owner reserves a life estate for themselves when conveying a property.

Remainderman

At the end of a life estate, this is the person who will then hold a fee simple estate.

prohibition of waste

Because a life estate is essentially "borrowing" someone else's prop- erty for the duration of a lifetime, the life tenant is required to maintain the property, pay property taxes, etc.

What fee simple defeasible estate is this an example of? Brenda gave her Elvis Museum to Apple, provided Apple continues to use it as a museum. If Apple instead turns it into Heartbreak Hotel, then Brenda must take action to recover the property. If she doesn't take action, the property remains with Apple, even if it's not used as a museum.

Condition Subsequent with Right of Re-entry

The original owner of the property has the right to reclaim possession of the property by taking action if the condition is triggered.

Condition subsequent with right of re-entry

This type of fee simple defeasible estate is one in which the estate doesn't end automatically if the stated event or condition occurs, but the grantor can reclaim ownership by taking action.

Condition subsequent with right of re-entry

what is another form of legal life estate that is not practiced in TN and is sometimes called marital life estates?

Dower & Curtsy

reversion

When another person isn't named as a remainderman in a life estate, the estate reverts to the original owner at the end of the life estate.

pur autre vie

a legal term for a different type of life estate

leasehold estates

a non-freehold (leasehold) estate conveys possession and control only and lasts for a definite period

With this type of estate, ownership of the property doesn't automatically revert to the previous owner when a condition is breached unless the owner takes legal action.

condition subsequent with right of re-entry

is the right to determine how the property is used, and who may enter the property.

control

Property is granted by the owner to an individual for a lifetime.

conventional life estate

what type of life estate most common form of life state in Tennessee, created by the property owner who grants the property to an individual for a lifetime?

conventional life estate

freehold estates

conveys possession, control, and title (ownership), and has no ending date specified

fee simple estate

conveys the most rights possible—the whole bundle of rights. Fee simple conveys all the rights of ownership including use, disposition, and inheritability. This is the type of ownership you're likely most familiar with because most titles are held as fee simple estates.

estate for years

definite duration that terminates automatically and is inheritable, meaning that if either party to the lease (usually the owner or the tenant) dies, the lease is not automatically terminated

What type of leasehold is characterized only by possession of a property, such as a situation in which a tenant continues to occupy an apartment after the lease has terminated?

estate at sufferance

A lease without an established time period that may be terminated at will by either party, and isn't inheritable

estate at will

Josephine is leasing a parking lot between her shop and the store next door. The owner hasn't decided yet whether to keep the parking lot or sell it, so he signs an __________________ with Josephine. Either Josephine or the owner may terminate with notice. If either Josephine or the owner dies, the lease terminates.

estate at will

what estate may be terminated at will by either party and is not inheritable, at the death of either party to the lease, the leasehold is automatically terminated?

estate at will

A lease that ends on a specific date, survives the death of either party, and is inheritable

estate for years

what type of leasehold estate is this an example of? Lisa has a notions shop in a commercial building. Her lease, which is in writing, is for three years. If Lisa or the building owner dies, the terms of the lease survive. At the end of three years, the parties may negotiate new terms, or Lisa may vacate.

estate for years

Possession of a holdover tenant (someone who didn't leave when the lease expired)

estate of sufferance

what type of leasehold estate is this an example of? Bill and Ted own an Adventure Gear store and have leased space in Martin's building. Their lease expired a month ago, and Martin wants them out because he has another tenant who will pay twice what Bill and Ted are paying. Although Bill and Ted sent their usual rent to Martin, he did not deposit their checks. Instead, he returned them and threatened holdover proceedings if they did not vacate immediately.

estate of sufferance

After a life estate holder dies and ownership rights have either reverted to the original owner or have been transferred to a remainderman, with what type of estate is the property held?

fee simple

Property ownership is conveyed without any conditions or limitations.

fee simple absolute

what type of fee simple estate is most commonly used in Tennessee, it means ownership without any conditions or limitations

fee simple absolute

Property ownership is conveyed with conditions.

fee simple defeasible

Elijah gave land to a school, but wanted to have some control over its use, so a deed was prepared stating the school owns the property as long as the land is used for educational purposes. What type of interest does the school have?

free simple defeasible

a legal life estate is always a ___________

homestead, (is a life estate in the property as long as it is held by)

homestead

is a life estate in the property as long as it is held by

estate at will

is either an oral agreement or one that has no specific ending date. It may be terminated at will by either party, and it's not inheritable. At the death of either party to the lease, the leasehold automatically terminates.

periodic estate

is periodic (e.g., six months) and automatically renews itself for successive tenancy unless one party terminates. This is also an inheritable leasehold estate. The period involved may be any negotiated period of time.

An estate in land

is the amount, type, and extent of an owner's interest in real property.

The contract that allows a tenant to live on the property is a(n) __________.

lease

Selma and Richard have the temporary right to live at 123 Elm Street. They can come and go and use the property as they see fit, but they can't do so indefinitely. They must vacate the property at the end of next year. What sort of interest do they have in 123 Elm Street?

leasehold estate

Property is granted by law to an individual for a lifetime.

legal life estate

estate of sufferance

one in which a tenant continues to occupy property after lawful authority has expired. The tenant is known as a holdover tenant. If a tenant under a lease stays beyond the lease's terms, and the landlord continues to accept rent from that tenant, that tenant becomes a month-to-month tenant. Alternatively, the landlord may remove the tenant by initiating a holdover proceeding, which is used to evict a tenant on any grounds other than the non-payment of rent, such as staying beyond the term of the lease or violating terms of a lease or rent laws.

is the right to use the property: to live or work there

possession

what type of free simple defeasible estate is this? The Millers gave their son, Steve, the family property, provided he doesn't marry his girlfriend. If he marries her, the property reverts back to them.

special limitation with possibility of reverter

Who is the lessee in a lease agreement?

tenant