What is the opposite of fee simple?
What is the opposite of fee simple?
LEASEHOLD: The leasehold interest is created when a fee simple land-owner enters into an agreement or contract called a ground lease with a lessee. A lessee buys leasehold rights much as one buys fee simple rights; however, the leasehold interest differs from the fee simple interest in several important respects.
What are the two types of fee simple Defeasible?
Are There Different Types of Fee Simple Defeasible?
- Fee Simple Determinable. A fee simple determinable automatically ends the interest in the property when a condition is violated or not met.
- Fee Simple Subject To Condition Subsequent.
- Fee Simple Subject To Executory Limitation.
What is freehold fee simple?
Freehold land (or fee simple) provides people with the most complete form of ownership of that land, in perpetuity. It allows the land holder to deal with the land including selling, leasing, licensing or mortgaging the land, subject to compliance with applicable laws such as planning and environment laws.
What is another name for a fee simple determinable estate?
Another name for fee simple estate. Also referred to as determinable, conditional or qualified fee. A defeasible fee creates an encumbrance on the title and runs with the land. There are two types: conditional fee or determinable fee.
What is another term for fee simple?
fee simple subject to condition subsequent. fee simple subject to executory interest. fee splitting.
What are the responsibilities of a life tenant?
The life tenant must maintain the property, make any existing mortgage payments, pay property taxes, and keep the property adequately insured. Without the consent of the remainderman, the life tenant may not take out a new mortgage or otherwise encumber the property.
Is life estate a good idea?
People typically consider a life estate deed because they like the idea of avoiding probate and/or they believe there is a chance that they might need to apply for Medicaid-covered long-term care in the future.
Who pays the taxes on a life estate?
For example, life tenants retain the Income Tax Deduction for Real Estate Taxes. As the owner of the property by virtue of the life estate, a life tenant may continue to deduct the real estate taxes he pays on his federal income tax return.
Does a will override a life estate?
When a person dies, beneficiaries might learn that the decedent made a deed that conflicts with the specific wording in his will. Generally, a deed will override the will. However, which legal document prevails also depends on state property laws and whether the state has adopted the Uniform Probate Code.
Do you have to pay taxes on a life estate?
Life Estates establish two different categories of property owners: the Life Tenant Owner and the Remainder Owner. Remainder Owners have no right to use the property or collect income generated by the property, and are not responsible for taxes, insurance or maintenance, as long as the Life Tenant is still alive.
What happens if a tenant doesn’t pay tax?
If the remaindermen pay the taxes, such as to avoid a tax sale of the property, they could in theory sue the life tenant for the money–which, however, will not help if the life tenant doesn’t have the money (a successful lawsuit does not make money appear where there is none).
Can life estate be changed?
Can a life estate deed be changed? It is challenging to modify or change a life estate deed. The grantor cannot change the life estate as he or she has no power to do so after creating the life estate deed unless all of the future tenants agree. It requires the permission or consent of every one of the beneficiaries.
Does a life estate have any value?
There is a value to a life estate. Upon sale, the life tenant is entitled to compensation for the sale of their interest. Life estates are valued using the age of the life tenant and the present fair market value of the property.
