1. California Real Estate Principles, 10.1 Edition
Chapter 6
Part II: Estates and
Methods of Holding Title

2. Owner’s Rights

3. 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

4. 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

5. 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

6. 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

7. Tenant’s Rights

8. One Owner

9. 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

10. Multiple Owners

11. 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:
T ime
T itle
I nterest
P ossession

12. A & B are still joint tenants D is a Tenant in Common
Joint Tenancy A B C
C sells
to D A B D
A & B are still joint tenants D is a Tenant in Common
Right of Survivorship A B C
C dies A B

13. A B C A B Tenancy in Common
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 A B C
C dies A B
C’s Heirs
Tenancy in Common

14. Tenancy in Common Multiple (2+) Owners Inheritable Interests
Equal Right of Possession

15. Characteristics of Community Property
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

16. 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

17. SEPARATE PROPERTY Property owned before marriage
Gift or inheritance during marriage
Sale proceeds/profit from sales of separate property
COMMINGLED becomes community property

18. 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