Estate
Degree of interest a person has in land that is or may become possessory. The right to possess the property is the right to occupy and use it.
Freehold Estate
Interest in real property with an indeterminable (not fixed or certain) duration. The holder of this estate is usually called an owner.
Fee Simple Estate
A freehold estate; the greatest estate in land; potentially infinite duration and represents the whole "bundle of rights"; may still be subject to encumbrances; inheritable and transferable
Fee Simple Absolute
Legal interest in land that is unconditional.
Qualified Fee Simple
Legal interest in land that is subject to one or more limitations placed on the estate by the grantor;
Possibility of Reverter
a.k.a. right of re-entry; when conditions are not met in a qualified fee estate
Life Estate
A freehold estate; Ownership interest is of uncertain duration; Limited to lifetime of specified person or persons; NOT a perpetual estate; NOT an estate of inheritance.
Life Tenant
Person who owns the Life Estate; may sell or lease only his interest in the property.
Measuring Life
Person whose lifetime is used to measure the life of the estate
Pur Autre Vie
Life Estate when the Measuring Life is someone other than the Life Tenant
Estate in Reversion
Any future interest kept by a person who transfers property to another.
Estate in Remainder
Title passes to 3rd party upon death of measuring life, the third party has this future possessory estate.
Less-than-freehold Estate
There are 2 parties to a lease: the lessor (or landlord) and the lessee (or tenant); tenant has a leasehold estate and the landlord retains an interest called a leased fee estate
Lease
Both a contract and a transfer of an interest in property; concerns real property but is itself personal property.
Estate for Years
Tenancy for a fixed period of time; formed through an express agreement; lease terminates automatically or upon mutual consent called surrender; begins and ends on a specific date.
Periodic Tenancy
No definite termination date but is for a specific period such as month-to-month until one party gives notice to terminate. Failure to give proper notice of termination results in automatic extension of lease for an additional period; often contain automa
Estate at Will
Often arises when a lease has expired and the parties are in the process of negotiating the terms of a new lease.
Tenancy at Sufferance
Lowest form of estate; one who comes into possession of land lawfully but who holds over after the lease ends, at the sufferance of the landlord.
Concurrent Ownership
Exists when 2 or more people own the property at the same time; 3 forms exist in WA state
Ownership in Severalty
When one person (or corporation) holds title to property individually
Tenancy in Common
2 or more individuals each have an undivided interest in a single piece of property; unity of possession; can have equal or unequal interests yet still entitled to share possession of WHOLE property; Can will interest to someone other than other tenants i
Joint Tenancy
2 or more individuals are joint and equal owners of the property
Right of survivorship
Community Property
All property owned is either the separate property of one spouse or community property of husband and wife; each spouse has an undivided 1/2 interest in the community property
Tenancy by Entireties
How married couples hold title to property in states that don't have community property laws. Have survivorship rights but not right of partition
Dower and Curtesy
For states that do not have community property nor tenancy by entireties, this allows marital interest in property.
General Partnership
Oral agreement or in writing.
Each partner shares equally in profits and management. responsibilities and can be help personally liable for debts of partnership.
Partnership not taxed; each partners earnings are taxed.
Limited Partnership
Must be in writing.
At least one general partner and one limited partner.
General partner unlimited liability & exclusive management rights.
Limited partner has limited liability and no voice in management.
Corporation
Owned by stockholders.
Artificial persons taking title in severalty.
Perpetual existence.
Incurs debts.
Subject to double taxation.
Securities
Securities
An ownership interest representing an investment over which the investor has no control.
Blue Sky Laws
State laws regulating the sale of securities.
Limited Liability Company
Insulates all of its co-owners (members) from liability for companies debts.
Joint Venture
Similar to a partnership only usually created temporarily.
Real Estate Investment Trusts
One or more trustees manage real property for the benefit of its investors (beneficiaries).
Minimum of 100 investors.
Subject to federal securities laws.
Not subject to double taxation.
Condominium
Buyer receives a deed and owns a fee simple interest in the airspace inside the unit in severalty, but shares ownership of the common elements with other owners as tenants in common.
Limited Common Element
Appurtenant to a particular unit even though it is physically outside the unit (for example a balcony or assigned parking space).
Condominium Declaration
Must be recorded, together with a true copy of the bylaws governing the operation of the property, a survey map of the land, and a set of plans of the buildings.
Cooperatives
Ownership of the entire project is vested in a single entity, usually a corporation.
Residents own shares proportionate to their own interests they don't own the real estate themselves.
Residents don't pay property taxes or title insurance.
Leasehold esta