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22 Cards in this Set
- Front
- Back
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Property |
A bundle of rights which includes the rights to possess, use, encumber, dispose of and to exclude. Can be real or personal. |
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Estate |
Expresses the degree, quantity, nature, duration, or an extent of an interest in land (degree of ownership) . |
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Freehold Estate |
An estate that endures for a period which is not fixed or ascertained by a specific limit of time. Characteristic of the holding of a free man under the feudal system. Can be FEE ESTATE or LIFE ESTATE. |
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Fee or Fee Simple (Estate) |
Greatest interest a person can have in land. Is of indefinite duration; freely transferable. Can be disposed during owner's life or upon death. Also known as a ESTATE OF INHERITANCE or PERPETUAL ESTATE. The two types include FEE SIMPLE ABSOLUTE and FEE SIMPLE DEFEASIBLE. |
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Fee Simple Absolute |
Owner holds estate without any qualifications or limitations. |
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Fee Simple Defeasible |
Owner holds estate subject to special conditions or limitations and if these conditions are breached, title goes back to original owner or heir. Title is "defeated". |
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Life Estate |
An estate that is limited in duration to life of its owner, or to life or lives of one or more designated persons. Holder of estate has right of possession; right to all rents and property; duty bound to keep improvements repaired; must pay taxes and just portion of assessments; must pay interest on any encumberance; may sell, lease, or encumber it only for the duration of the life estate (termination voids this); cannot commit waste (damage property). |
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Estate in Reversion |
Estate in which the title to property is given to original grantor or grantor's heirs following the death of a designated person on whose life it depends. |
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Estate in Remainder |
Estate in which title to property is passed on to a third person upon death of designated person on whose life it depends. |
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Less-than-freehold Estate or Nonfreehold Estate |
An estate owned by a tenant who rents or leases property; commonly called a lease or leasehold. |
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Leasehold Features |
Lessor (landlord) holds title or reversion during lease. Lessee (tenant) holds right to exclusive possession. Leasehold is a chattel real - an interest in real property but still only a form of personal property. Tenancy - the estate of a tenant; holding property of another. |
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Types of Leasehold Estates |
There are four types based on length of their duration: Estate for Years; Estate from Period to Period or Periodic Tenancy; Tenancy at Will; Estate at Sufferance. |
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Estate for Years |
An estate which is to continue for a definite period that has been fixed in advance. Period may be measured in days, weeks, or months. |
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Estate from Period to Period (Periodic Tenancy) |
An estate which continue for successive periods of the same length, unless terminated sooner by notice. (week to week, month to month, year to year) |
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Tenancy at Will |
An estate which confers a right to possession for an indefinite period of time and no express reservation of rent. Terminable at the will of either party. Converts to periodic tenancy as soon as landlord accepts periodic rents. Example: Tenant enters property with permission of landlord pending completion of lease negotiations but has paid no rent. |
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Estate at Sufferance |
An estate in which the lessee who rightfully came into possession, retains it after expiration of the lease without consent of the landlord. |
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Requisites to Create a Leasehold |
No particular language required as long as there is an intent to lease and there is mutual assent. Terms must include: names of parties; description of premises; amount of rental payments with time and manner of payment; length of lease (city, urban, or rural limited to 99 years; agriculture limited to 51 years) ; if length is longer than one year, must be in writing; if in writing, must be signed by lessor. Lessee usually signs but acceptance of lease terms is same as signature; to record - must be acknowledged by notary public. |
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Rights of Possession |
Upon commencement of lease, tenant takes over same rights as there held by landlord with respect to possession and enjoyment of premises, unless landlord has reserved some rights. |
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Rent |
Consideration paid for use of the property. Legally payable at termination of successive periods of holding but most contract terms require payment in advance. |
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Security Deposits |
Advance payment to cover last month's rent, cleaning or key deposit, damage to premises or as security for performance. On a lease of residential property with a term of less than 6 months, in addition to first month's rent, landlord cannot collect more than following amount as security for any reason: Unfurnished property - equivalent to two month's rent. Furnished property - equivalent to three month's rent. |
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Quiet Enjoyment and Possesion |
Every lease has an implied covenant whereby lessor agrees to place tenant in quiet enjoyment and possession of the property. Covenant is breached if landlord: Enters without consent. Makes unnecessary and unwarranted repairs and alterations. Harasses tenant with excessive noise or pestering. Locks tenant out or cuts off utilities (even if tenant is arrears on rent) |
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Tenant's Rights and Recourses |
If landlord fails to maintain property in a habitable condition and if this breach is serious and material (not due to tenant's negligence) tenant must give notice to the landlord of the defect and can do any of the following if the defect is not corrected in a reasonable period of time: Withhold rent payment until corrected. Report landlord to local housing authorities. Abandon the premises; "Constructive Eviction" Pay rent but sue landlord. Make repairs themselves and deduct cost from due rent. Cannot exceed cost of 1 month's rent and can only be done twice a year. Upheld by court of law. |
