Estate & Methods Of Holding Title

Front 1

Freehold Estate

Back 1

1) Estate in fee
A) Fee Simple Absolute
• greatest interest
• w/out qualifications or limitations
• can't be defeated by the previous owner
• not free from encumbrance
B) Fee Simple Defeasible
• may b voided at later date
- possibility of being defeated ex: prohibits sale of alcohol

Front 2

Freehold Estate (cont.)

Back 2

2) Life Estates
- held for the time of the designated life
• Remainder- A pass to B
• Reversion- A to B, B dies then C receives
• Reservation- A to B, the A dies B keeps

Front 3

Less than Freehold

Back 3

- r interest held by tangents who a) rent or b) lease

Front 4

Joint Tenancy

Back 4

- 2 or more ppl r joint & equal owners of the same undivided interest in real property. 4 unities must exist:
1) Unity of Time
2) Unity of Title
3)Unity of Interest
4) Unity of Possession
* if any missing its invalid

Front 5

Right of Survivorship

Back 5

* most important characteristic of joint tenancy.
- if 1 tenant dies the surviving joint tenant receives everything
• ex)
A&B , B dies, A gets everything.
A,B,&C own,C dies, A&B own 1/2

Front 6

Tenancy in Common

Back 6

- When 2 or more owners of an undivided interest in prop hold title. These r the characteristics:
1) no right of survivorship
• upon death prop goes to heirs not to co-owners. Requires probate proceedings.
2) holds unequal interest/shares
3) = rights of possession & must pay share of expenses, such as taxes
4) each owner may will there interest to heirs
5) each co owner can convey, sell, or encumber there interest w/out the consent of others

Front 7

Tenancy in Business Partnership

Back 7

- When 2 or more ppl as partners pol their assets, interests, & efforts in a business venture w/ea sharing profit/loss
•Ex- A&B own prop as partners; A dies; B is now title in trust until executor/administrator execute B's will.
* Limited Liability- if all legal requirements have been met, limited partners can only lose their investments & not for partnership debit.

Front 8

CommunityProperty

Back 8

- ownership held by husband & wife, all prop acquired during marriage
- husband & wife equal shares
- exceptions
1) all prop owned before marriage can stay as separate prop.
2) acquired by gift or inheritance remains separate prop
3) all income & profits from separate prop remain separate
- need both dignitaries to convey title

Front 9

Living Trust

Back 9

- when the owner transfers the prop to the trust & names he or she as trustee.
- trustee enjoys all the benefits
- upon death title passes to named beneficiary immediately.
- the living trust does not eliminate taxes but eliminates cost of probate