Description
Questions:
CHAPTER 6 (Part II) – Estates & Methods of Holding Title:
1. What is a Freehold Estate? What is the estate that is the most complete form of ownership? What is an estate in remainder? Be specific.
2. What is a Less-Than-Freehold Estate? How does it differ from a Freehold Estate?
3. What is ownership in severalty mean? Define Tenancy in Common.
4. Name and describe the 4 unities of Joint Tenancy.
5. Define Community Property. How is it different from Joint Tenancy?
Please number your responses to match the questions.
Unformatted Attachment Preview
Cuyamaca College
Real Estate Principles (RE 190)
Chapter 6, Part II
Estates and Methods of Holding Title
Owner’s Rights
ESTATES
1. Freehold
POSSESSORY-INDETERMINATE DURATION
(Rights of Owner)
TITLE
FEE SIMPLE
ABSOLUTE
DEFEASIBLE
LIFE ESTATE
REVERSION
REMAINDER
Fee Simple Estate
• Fee Simple Absolute:
– No private restrictions
– The HIGHEST form of ownership
• Fee Simple Qualified (Defeasible)
– Title is subject to private restrictions
NOTE: All property subject to governmental controls
Life Estate
I grant 123 Elm Street to
my mother for her life,
and after her death, to
the Real Estate
Scholarship Fund
Foundation.
Mrs. Smith
REMAINDER
Life Estate
I grant to my land
to my mother for
her life, and upon
her death the land
reverts to my
estate.
Mr. Kelly
REVERSION
Life Estate
I grant my home to the
Real Estate Scholarship
Endowment Fund, but I
reserve the right of
possession to my home
for the rest of my life.
Mr. J.R. Smith
RESERVATION
Tenant’s Rights
2. Less-Than-Freehold
POSSESSORY-LIMITED DURATION
(Rights of Tenant)
LEASE-LEASEHOLD-CHATTEL REAL
ESTATE
FOR YEARS
TENANCY
AT WILL
TENANCY AT
SUFFERANCE
PERIODIC
TENANCY
One Owner
OWNERSHIP
1. SEVERALTY
CORPORATION
LIMITED PARTNERSHIP
LIVING TRUST (Inter Vivos)
REIT
SEPARATE PROPERTY
JOINT VENTURES
INDIVIDUAL
Taking Title When Unmarried
• Title Taken As:
– “A Single Man” or “A Single Woman”
• Never Been Married
– “An Unmarried Man” or
– “An Unmarried Woman”
• Was Married
• Not Married When Acquired
– “Sole and Separate property”
• Are Married
• Acquired During Marriage
• Keeping Separate From Marriage Funds
OWNERSHIP
2. CONCURRENT
Joint Tenancy
Tenancy in Common
Community Property
Partnership Property
• Multiple Owners
Joint Tenancy
•
•
•
•
•
Right of survivorship
Equal shares for all joint
tenants
No probate. Cannot will the
title interest
Surviving tenant gets title
free of debts of deceased
Four unities must exist:
1. T ime
2. T itle
3. I nterest
Joint Tenancy
C sells
A
B
to D
A
B
D
C
A & B are still joint tenants
D is a Tenant in Common
Right of Survivorship
C dies
A
B
C
A
B
• No right of survivorship. Can leave property by a will
• Involves Probate. Can convey without co-owner’s permission
• Equal right of possession. Must pay percentage share of
expenses
• Each owner may sever interest without permission of others
• Undivided interest in the whole
• Example: A 1/3, B 2/3 or A ¼, B ¼, C ½
C dies
A
B
C
A
B
C’s Heirs
Tenancy in Common
Characteristics of
Community Property
1.
2.
3.
4.
5.
Property acquired during valid marriage
EXCEPTIONS:
-property acquired before marriage
-property acquired during marriage by gift or
inheritance, if not commingled
Equal Co-Managers, Both signatures required to sell or
lease
Each spouse has the right to will to whomever, unless they
agree to the right of survivorship
No probate if left to surviving spouse
Community Property
• Can ONLY be with held with a spouse or registered
domestic partner
• Real property acquired during the marriage or
registration
• If no title is stated, the Court presumes all property is
Community Property
• Either party may separately will their share
• Requires both signatures to sell or lease
• Injured spouse has one year to void action
• Limited probate proceedings for spouse, no probate if
community property with right of survivorship
• Undivided interest. Equal management, control, rights,
ownership and possession
Community Property
husband wife
husband
wife
wife
Husband dies intestate
husband
wife
Husband dies
wills all of his property to someone
other than wife
?
wife
SEPARATE PROPERTY
• Property owned before marriage
• Gift or inheritance during marriage
• Sale proceeds/profit from sales of
separate property
• COMMINGLED becomes community property
Tenancy in Partnership
• Two or more persons join for a business
• Rights not assignable
• Partners are jointly and severally liable
• General partner
– General partner is responsible for debts
– Unlimited liability for the business debts
• Limited partner
– Only responsible up to the amount invested
• Frequently used for real estate syndicates
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