Simple English definitions for legal terms
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A possessory estate is a type of property ownership where the owner has the right to use and possess the property. There are two types of possessory estates: non-freehold estates (where the tenant does not own the property) and freehold estates (where the tenant owns the property). Freehold estates can be further divided into three types: life estate, fee tail estate, and fee simple estate. A life estate gives the holder the right to use the property for their lifetime, after which it will transfer to another person. A fee tail estate is an old system where the property must be passed down to blood heirs and is no longer used in most places. A fee simple estate is the most common type of property ownership, where the owner has complete control over the property. There are two types of fee simple estates: absolute (where the owner has complete control over the property) and defeasible (where the ownership can be revoked if certain conditions are met).
A possessory estate, also known as a present possessory estate, is a type of real property ownership where the holder has the current right to possess the property. This is different from a future interest, which is a right to possess the property in the future. Present estates can be divided into Non-Freehold Estates, where the tenant does not hold ownership, and Freehold Estates, where the tenant holds ownership. There are three types of Freehold Estates: Life Estate, Fee Tail Estate, and Fee Simple Estates.
A life estate grants the holder the right to use the property for the duration of their life. At the end of their life, the property will transfer to another person. For example, if a property is granted to A for life, then to B, A will have the property until they die, and then the property will transfer to B.
A Fee Tail Estate is an old system designed to establish family dynasties where the property must be passed down to blood heirs. This system has been abolished in most jurisdictions.
Fee Simple Estates are the most common type of Freehold Estate and grant complete ownership of the property. There are two types of Fee Simple Estates: Absolute and Defeasible.
An absolute fee simple estate is one where the owner has complete control over the property and cannot be revoked by others. However, the property may still be subject to non-property issues like taxes or seizure for unpaid judgments.
A defeasible fee simple is a type of Fee Simple Estate that can be removed for a reason established in the granting document. There are three types of Defeasible Fee Simple Estates:
These examples illustrate how different types of Freehold Estates work and how they can be transferred to other people based on certain conditions.