Present Estate
An interest in real property that entitles the holder to its current use and possession.
Future Interest
The right to possess property in the future.
Freehold Estate
Estates of indeterminable length of ownership, such as those existing for a lifetime or forever. Freehold estates are passed from the grantor to the grantee.
Non-Freehold Estate
When an owner has rented the property to a tenant.
Fee Simple Estates
A holder of an estate in fee simple is entitled to all rights in the property. The estate passes on to the owners heir if they pass.
Life Estates
A freehold estate in land that is limited in duration to the life of the new owner or to the life or lives of some other designated person or persons.
Fee Simple Absolute
A fee simple ownership on which there are no limitations. This is the highest form of ownership.
Defeasible Fees
A fee simple defeasible estate may be lost on the occurrence or non-occurrence of a specified event.
Words of Duration
Specific phrases used in deeds or wills that limit the timeframe of ownership, creating a fee simple determinable that automatically terminates when a specified event occurs.
Words of Condition
Specific phrases used in conveyances to create defeasible fees, limiting ownership based on the occurrence or non-occurrence of an event.
Fee Simple Defeasible
Requires that a specified activity or land use continue. “ so long as” “during the period” The former owners, their heirs retain the right of revision that automatically requires full ownership if the special condition to cease to exist. No law suit is needed.
Possibility of Reverter
the future interest reverts automatically to the grantor on the happening of the stated event.
Fee Simple Subject to a Condition Subsequent
A fee simple defeasible estate, in which the estate dictates some action or activity the new owner must not perform. The former owner retains a right of re-entry called a reversionary right.
Right of Entry
If a previous owner places a condition that the current owner must not do or a simple subject to a condition subsequent and the current owner breaks that condition, than the former owner retains a right of re-entry.
Fee Simple Subject to Executory Limitation
when the future interest in a defeasible fee belongs to someone other than the grantor.
Executory Interest
A non-vested future interest held by a third party (not the grantor) that automatically divests or cuts short a prior fee simple estate upon the happening of a specific event.
Shifting Executory Interest
an executory interest that cuts short an estate in someone other than the grantor.
Springing Executory Interest
executory interest that follows an estate in the grantor.
Intervivos
the property is conveyed during the owner’s lifetime, rather than upon death via a will.
Words of Purchase
specific language used in a will that identifies the individuals who will receive property or benefits from the estate.
Words of Limitation
specific terms in a deed or will defining the duration, quality, and extent of the interest conveyed to a grantee.
Heirs
individuals legally entitled to inherit real property when an owner dies without a will (intestate), determined by state laws of descent and distribution.
Testator or Testatrix
an individual who makes and executes a valid last will and testament, outlining the distribution of their property, including fee simple estates, upon death.
Devisee
a person or entity designated in a will or trust to receive real property upon the death of the owner (testator).
