Types of Real Estate Ownership

1. Fee Simple – Outright ownership of the property. Highest degree of ownership that someone can have.

2. Fee Simple Determinable – ownership that automatically terminates on the occurrence or nonoccurrence
of an event that is expressed in the document creating the ownership. Most of the time this document is the deed.

3. Fee Simple Upon a Condition Subsequent – Violation of a condition gives the grantor the legal right to recover.
However, the agreement is not automatically terminated; it is the option of the grantor to terminate the agreement
once the violation has occurred. If they decide to do nothing, then there is no affect.

The previos two create the possibility of future interest if the condition is broken.
A. Possibilty of Reversion – This is when the land goes back to the grantor.
B. Possibility of Remainder – This is when the land goes to a desginated party.
*Statute of Limitations is 30 Years. If nothing is done, then the condition no longer applies.

4. Life Estate – An interest in real estate measured by the life, or the lives, of one or more persons.
Examples
a. “I convey property to X for his life, and then to Y. X is the life tenant, while Y is the remainder tenant.”
b. “I convey property to Y, and then back to me upon their death” Property reverts back to grantor.
c. “I convey property to Z for the life of D, and then back to the grantor or another party.” Very rare situation.
d. “Convey the property to S, but grantor retains life estate on it.”

Less Than Ownership Interests

1. Estate for Years (Lease) – A lease is a written contract giving a lessee exclusive rights to exclusive possession
of a certain real estate for a certain time, for a certain rent.

2. Estate at Will (Tenancy at Will) – A tenancy at will is permission to occupy certain real estate which permission
is terminable by the landlord at his election after reasonible notice to the tenant. Reasonable notice usually means
a little more than a month’s notice. Tenancy at will is the least of all possible interests one can have in a piece of
real estate.