Real Estate Chapter 5.docx - Interests An interest in real estate is ownership of any combination of the bundle of rights to real property including the

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

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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.
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