Real Estate Chapter 5.docx - Interests An interest in real...

Interests
An interest in real estate is ownership of any combination of the
bundle of rights to real property, including the rights to
possess
use
transfer
encumber
exclude
Undivided interest is an owner's interest in a property in which two
or more parties share ownership. The terms "undivided" and
"indivisible" signify that the owner's interest is in a fractional part of
the entire estate, not in a physical portion of the real property itself. If
two co-owners have an undivided equal interest, one owner may not
lay claim to the northern half of the property for his or her exclusive
use.
Examples of interests include:
an owner who enjoys the complete bundle of rights
a tenant who temporarily enjoys the right to use and exclude
a lender who enjoys the right to encumber the property over the
life of a mortgage loan
a repairman who encumbers the property when the owner fails
to pay for services
Interests differ according to
how long a person may enjoy the interest
what portion of the land, air, or subsurface the interest applies to
whether the interest is public or private
whether the interest includes legal ownership of the property
Estates in land
An estate in land is an interest that includes the right of possession.
Depending on the length of time one may enjoy the right to possess
the estate, the relationships of the parties owning the estate, and
specific interests held in the estate, an estate is a freehold or a
leasehold estate.
In a freehold estate , the duration of the owner's rights cannot be
determined: the rights may endure for a lifetime, for less than a
lifetime, or for generations beyond the owner's lifetime.