1. Real Estate Investment Chapter 4 Ownership of Real Property © 2011 Cengage Learning

2. Key Terms Assets Automatic Community property Curtesy Devisee Disposition Dower right Estate in severalty Estates Fee simple absolute

3. © 2011 Cengage Learning Key Terms Fee tail Freehold estates Future interests Heir Homestead protection Joint tenancy Land trust Leasehold estate Life estate Non-freehold estates Present interest

4. © 2011 Cengage Learning Key Terms Quit claim deed Real Estate Investment Trust Remainder Remaindermen Reversions Right of survivorship Separate property Tenants in common Trust Trustee Undivided interest

5. © 2011 Cengage Learning Fee Simple Fee simple implies major rights Possession Use Enjoyment Disposition Most crucial right

6. © 2011 Cengage Learning Definition of Estate An interest in land. The sum of property rights and/or things affixed to the land, which have a given duration of time. An estate is concerned with the land; ownership is concerned with people. Feudal versus allodial.

7. © 2011 Cengage Learning MAJOR CLASSES OF ESTATES Present Possessory Freehold Estates of Potentially Infinite Duration. Fee Simple Absolute Fee Simple Conditional Fee Simple Estates of Potentially Limited Duration Fee Simple Determinable Fee Simple Subject to Condition Subsequent Fee Simple Subject to Executory Limitation

8. © 2011 Cengage Learning MAJOR CLASSES OF ESTATES Present Possessory Freehold Estates of Limited Duration (Life Estates). Conventional Life Estates Life Estate for Grantee’s Life Life Estate Limited by Life of Someone Other than Grantee Legal Life Estates Dower Curtesy Homestead Protection

9. © 2011 Cengage Learning MAJOR CLASSES OF ESTATES Future Interests Reversion Remainder Executory Interests Springing Executory Interests Shifting Executory Interests

10. © 2011 Cengage Learning MAJOR CLASSES OF ESTATES Nonfreehold Estates (Leaseholds) Tenancy for Years Tenancy from Period to Period Tenancy at Will Tenancy at Sufferance

11. © 2011 Cengage Learning Land Interests Not Deemed Estates Easements Licenses Profit Covenants

12. © 2011 Cengage Learning Classification of Property Ownership Sole Ownership Tenants in Common Joint Tenancy Tenancy by the Entirety Community Property

13. © 2011 Cengage Learning Trusts Trust Estates Inter Vivos Trusts Testamentary Trust Land Trust Real Estate Investment Trust (REIT)