Aceable principles 1 Exam Questions and Answers 100% Pass

Aceable principles 1 Exam Questions and Answers 100% Pass Life Estates - level 13 chp 2 The Four Main Types of Estates - Freehold Estates Leasehold Estates Equitable Estates Concurrent Estates Freehold Estates - Three Types of Freehold Estates Okay, so now you know what a freehold estate is. Let's break it down further into three categories: Fee simple absolute estate Defeasible fee estate (also called qualified fee or fee simple defeasible) Life Estate Fee Simple Estate/Fee Simple Absolute - the highest interest in real estate recognized by law. holder is entitled to all rights to the property by law. runs forever. heirs. 2 | P a g e Katelyn Whitman© 2025, All Rights Reserved. Defeasible Fee Estates - The defeasible fee estate is a property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions. Ownership reverts back to the original owner if these stipulations are violated. It's similar to a life estate (which we'll cover a little later) in that some event must take place for the estate to come to an end. Two Common Forms of Defeasible Fee Estates They are: Fee Simple Determinable Fee Simple Subject to Condition Subsequent Fee Simple Determinable - This particular defeasible estate will come to an end automatically and immediately upon the occurrence of a designated event, the time of such occurrence is uncertain. No legal action is required of the grantor in order to assume the recovery of the estate. Fee Simple Subject to Condition Subsequent - These estates have specific requirements on them that, if they are not met, could cause the property to revert back to the original owner. 3 | P a g e Katelyn Whitman© 2025, All Rights Reserved. But a fee simple subject to condition subsequent estate will NOT immediately go back to the grantor like a fee simple determinable estate. Instead, with the fee simple subject to condition subsequent estate, the previous owner would have to go to court to prove that they should be the proud owner again. Determinable vs. Subject to Condition Subsequent - The difference is that this return to the original owner is automatic with fee simple determinable, but the reversion requires going to court if it's subject to a condition subsequent. Fee simple determinable doesn't require you to go to court to get your property back: It's already been DETERMINED that it'll be returned to you. Fee simple subject to condition subsequent does require you to go to court. That's another, SUBSEQUENT action you have to get to get your property back. Life Estates - A life estate is yet another type of freehold estate. A life estate is so named because it is owned for the duration of an individual's life. The life estate documents identify the party to whom the estate will pass at the time of the death of the individual upon whom the life estate is based. Sometimes it passes to a new owner, and sometimes it reverts back to the original owner. Life Estate Terms 4 | P a g e Katelyn Whitman© 2025, All Rights Reserved. There are certain terms that apply to a life estate that you'll want to learn. They are remainder, reversion, and remainderman. Remainder refers to the estate that will pass to another party at the death of the person upon whom the life estate is based. Reversion is the concept that the property will revert back to the person who granted the life estate in the first place. Remainderman refers to the recipient of the remainder — either the grantor who set up the life estate or a designated third party. Remainderman and Reversion - A life estate is a more limited interest in real property than a fee simple absolute estate because ownership is limited to the lifetime of the life estate owner or some other designated party. The life estate owner does NOT have the right to dispose of the property or allow the property to descend to heirs. Instead, the grantor of the life estate will either: Designate a third-party as a remainderman (recipient of the remainder, with a remainder interest). The remainderman receives the estate when the grantor's own life estate ends.OR 5 | P a g e Katelyn Whitman© 2025, All Rights Reserved. Set themselves up for repossession of the property via a reversion or reversionary interest. Two key points regarding life estates, remainderman, and reversion: Life estates may be created by agreement of the parties or by operation of the law (state statute). Upon the death of the life tenant, the holder of either the reversionary or remainder interest will own a fee simple absolute estate. If no third party is named as remainderman, when a life estate owner dies, the property reverts to the: - grantor