Real Estate Estates: Freehold vs Leasehold

Understanding Estates

Estate Definition: Degree, nature, and extent of ownership rights in real property.
Estates can be undivided or divided into smaller types.

Known as Fee Simple Absolute.
Owner has a comprehensive bundle of rights:
- Right of possession
- Right of control
- Right of exclusion
- Right of enjoyment
- Right of disposition
Forms of Fee Simple Ownership:
- Estate in Severalty: Single owner with full control.
- Tenancy in Common: Co-ownership with undivided interests.
  - Owners can sell or transfer interests independently.
if owner passes away without valid will their interest will transfer to that owners heirs
- Joint Tenancy: Co-ownership with right of survivorship.
  - Requires four unities: Possession, Interest, Time, Title.
  - joint tenants can sell their ownership portion while still alive. New owner will become tenant in common because the unities were not created at the same time.
Shares pass to surviving owners upon death.
- Tenancy by the Entireties: Exclusive to married couples.
  - Marriage itself owns the property with equal ownership.
  - Prevents unilateral decisions without consent.
- if one spouse pass away the the survivor spouse automatically inherit the property in fee simple as an individual estate.

Ownership transferred for the duration of recipient’s lifetime.
Life Tenant: Can lease, mortgage, sell, but cannot transfer more rights than owned.
Reversion Estate: Ownership reverts to grantor or heirs after life tenant’s death.
Remainder Estate: Passes to a designated person/entity after life tenant’s death.