Ownership
:Two types of ownerships flow from historical concepts
1)tenure: is a temporary use of land without ownership(lease)
2)state: is a permanent ownership on the land
TYPES OF ESTATES
Estate to Uses
The estate to uses concept was at one time a method of holding ownership. Normally, such ownership was obtained by deed, will or possession.
Fee Simple
Fee Simple is the highest estate or absolute right in real property. Fee simple provides the most rights with the fewest limitations and is generally considered absolute ownership
Future Estate
Future estates normally arise with life estates. Since a life estate is not everlasting, a large portion of the fee simple remains when the life estate ends. This remaining portion is called a reversion when the grantor of the life estate reserves the balance for himself.
Leasehold Estate
A leasehold estate is an interest in land for a definite period of time—a week, a month, a year, 99 years or any other specific period of time.
Life Estate
A grantor in a deed or will may grant an interest in the lands to someone for a lifetime
period. That interest will cease on the death of the named individual:
(More Detail)
TYPES OF ESTATES
Estate to Uses
The estate to uses concept was at one time a method of holding ownership. Normally,
such ownership was obtained by deed, will or possession. Estate to uses flowed from
trust ownership in which title was in the name of a registered owner who may have held
title as a trustee for the real or beneficial owner.
This concept gave rise to estate to uses where ownership was held for a future buyer and
was often used to avoid a dower right. Dower right has been largely replaced by provincial
legislation concerning spousal rights in regard to land ownership and, consequently,
estate to uses has fallen into disuse.
Fee Simple
Fee Simple is the highest estate or absolute right in real property. Fee simple provides the
most rights with the fewest limitations and is generally considered absolute ownership.
However, this bundle of rights (the right to use, sell, lease, enter, give away or refrain
from any of these rights in regard to property) is subject to various restrictions imposed
by laws of governing authorities. The bundle of rights is discussed later in this Chapter.
FEE SIMPLE WITH CONDITIONS
Fee simple can be created so that it terminates under certain conditions. A determinable
fee simple is one that automatically terminates on the occurrence of some event, which
may never happen. While prevalent historically, such arrangements are infrequently
found and may be considered contrary to law and public policy.
For example, a tract of land might be dedicated for educational purposes and would
revert back if such use was ever terminated. Another example of fee simple with conditions
would be a grant from the grantor to Smith and his heirs so long as the property is used
as a farm. The fee simple interest will cease and the land will revert to the grantor or the
heirs if the land ceases to be used as a farm.
FEE TAIL
An historical fee that restricted the inheritability of land to a limited class of heirs, such
as the eldest male. Such provisions, often found in old deeds/wills, are no longer valid.
Future Estate
Future estates normally arise with life estates. Since a life estate is not everlasting, a large
portion of the fee simple remains when the life estate ends. This remaining portion is called
a reversion when the grantor of the life estate reserves the balance for himself. If, however,
the grantor gives the balance to a third party, the remaining portion is called a remainder.
The life estate and the estate in remainder co-exist. The life tenant and the person
entitled to the remainder both have an interest in the property from the beginning of
the life estate. The difference is that the person with the remainder cannot use the
property so long as the life estate exists, while the life tenant is restricted in what he/she
can do with the property. In a general sense, the life tenant is responsible for current
obligations and has the benefit of current assets while the ultimate owner has the capital
benefits and obligations. If, however, the life tenant and the person with the remainder
are in agreement, the property may be dealt with in any manner they choose; e.g., sell
the property, tear down buildings or dig up the land, because their combined interests
form the entire fee simple.
Leasehold Estate
A leasehold estate is an interest in land for a definite period of time—a week, a month, a
year, 99 years or any other specific period of time. The estate cannot, however, be longer
than the estate from which it was granted. In a leasehold estate, the person to whom the
interest is granted is called the lessee or tenant, and the grantor of the interest is called
the lessor or landlord. These individuals are governed partly by old established rules of
common law and partly by provincial tenancy legislation.
Life Estate
A grantor in a deed or will may grant an interest in the lands to someone for a lifetime
period. That interest will cease on the death of the named individual: for example to Jones
for his life. The grantor may specify rights and obligations that affect the life tenancy; e.g.,
use of the land, limitations on alterations/improvements, and payment of usual expenses
such as taxes and maintenance. This type of estate often arises under the terms of a will.
Refrence: BOOK: REAL PROPERTY LAW , Chapter 1 ,History and Concepts of Property Ownership
