CHAPTER 5 - Real Estate Chapter 5 CHAPTER 5 TYPES OF...

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Real Estate Chapter 5 CHAPTER 5 TYPES OF OWNERSHIP I. Estates in Land A. Introduction 1. In legal terms, estate (or estate in land) can describe the nature, quality, and quantity of person’s interest in real estate 2. Legally estates (in land) fall into two categories: a. freehold estates - estate in fee or for life characterized for their uncertain duration. Duration uncertain and ownership interest b. non-freehold/leasehold estates - considered to be personal property and that may be of definite duration. Limited duration and a leasehold (no ownership) 3. Freehold estates will be examined in this chapter and there are four types: a. fee simple absolute law presumes in favor of this over (b) b. fee simple defeasible c. fee tail d. life estate B. Fee Simple Absolute 1. Fee Simple Absolute - an estate limited absolutely to its owners and their heirs that assigned forever without limitation or condition, subject to zoning and condemnation (eminent domain) with unlimited duration. 2. Example: will that grants a farm to Jones, gives Jones a fee simple; an absolute control of property 3. Most common type of freehold estate 4. Greatest property right with no limit on use and duration C. Fee Simple Defeasible 1. Fee Simple Defeasible - A fee estate that may end upon the happening of a special event; limited use and subject to end. Must use “specific” language to indicate this by (1) use the word FSD (2) contract and deed with specified limitation and (3) reverter; what causes this. There are three common types of this: a. fee simple determinable b. fee simple subject to an executory limitation c. fee simple subject to a condition subsequent 2. Fee Simple Determinable - ends automatically when land is used in a manner forbidden in the grant of ownership a. the grantor’s interest is called possibility of reverter
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CHAPTER 5 - Real Estate Chapter 5 CHAPTER 5 TYPES OF...

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