book outline

book outline - 1. Free hold estates no definite expiration...

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1. Free hold estates – no definite expiration date on the estate a. Fee simple estates: most complete form of ownership of RE. Most common type of ownership with no restrictions on the rights of the holder. b. Life estates: lasts only as long as the life of the owner of the estate or some other person. i. Ex. estate is gifted to someone else upon death of the grantor. The uncertainty around the duration of the life estate makes its marketability and value as collateral limited. 2. Estates Not yet in Possession a. Reversion: when the holder of an estate (grantor) conveys to a grantee a present estate while retaining the right to take the estate back. This reversionary interest can be sold or mortgaged since it’s an actual interest in the property. b. Remainder: when the grantor of a present estate conveys the reversionary interest to a third party. A remainder is the futer estate for the third party and can be mortgaged. 3. Lease hold estates a. Estate for years: created by a lease that specifies and exact duration for the tenancy and may be less than one year. Required to be in writing if this lease exceeds 1 year and can be as long as 99 years. If the rental payments fall below the market rental rate, the lease has value (leasehold value) to
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book outline - 1. Free hold estates no definite expiration...

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