Real Property Leasehold and Freehold Estates
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Questions and Answers

What is a leasehold or leasehold estate?

  • Land ownership bought through auction
  • A type of freehold estate
  • Ownership interest in real property by a lessee (correct)
  • Ownership of real property through inheritance

    • What are the four types of leasehold estates?

    Tenancy at sufferance, Tenancy at will, Tenancy for years, Tenancy in severalty

    A tenancy at sufferance exists when a tenant is legally allowed to remain in a property after their lease has expired.

    False

    What characterizes a tenancy at will?

    <p>Either the landlord or the tenant may terminate at any time on reasonable notice.</p> Signup and view all the answers

    What is a tenancy for years?

    <p>A fixed-term tenancy that lasts for a specified amount of time.</p> Signup and view all the answers

    What type of tenancy involves ownership by a single individual?

    <p>Tenancy in severalty</p> Signup and view all the answers

    What does a freehold estate refer to?

    <p>A right of title to land characterized by immobility and indeterminate duration.</p> Signup and view all the answers

    When does a life estate expire?

    <p>Upon the death of the owner or specified person.</p> Signup and view all the answers

    Fee simple absolute property can be inherited.

    <p>True</p> Signup and view all the answers

    What is a fee simple defeasible?

    <p>Ownership dependent on a specified condition.</p> Signup and view all the answers

    Which of the following is NOT a type of freehold estate?

    <p>Tenancy for years</p> Signup and view all the answers

    What is a cost of living lease?

    <p>A lease that adjusts rent based on general inflation.</p> Signup and view all the answers

    What defines a gross lease?

    <p>The tenant pays a flat amount, while the landlord covers all operating costs.</p> Signup and view all the answers

    What is a net lease?

    <p>The tenant pays base rent plus some expenses.</p> Signup and view all the answers

    What is a percentage lease?

    <p>A lease where the tenant pays a base amount plus a percentage of gross income</p> Signup and view all the answers

    What is a sandwich lease?

    <p>A leasehold estate where a lessor subleases to a subtenant.</p> Signup and view all the answers

    Describe a step lease.

    <p>A lease that allows for rent increases at set amounts annually.</p> Signup and view all the answers

    Study Notes

    Leasehold Estates

    • Ownership interest where a lessee holds real property via a lease from a lessor.
    • Four types:
      • Tenancy at sufferance: Tenant occupies property post-lease expiration until ejected.
      • Tenancy at will: Lease can be terminated by either party at any time with reasonable notice.
      • Tenancy for years: Lease for a predetermined fixed period.
      • Tenancy in severalty: Individual ownership of property.

    Freehold Estates

    • Title to land characterized by immobility and indeterminate duration.
    • Types include:
      • Life estate: Ownership expires upon the owner's death or that of a specified individual.
      • Fee simple absolute: Full ownership with unconditional rights and inheritable to heirs.
      • Fee simple defeasible: Ownership subject to specific conditions that can affect title.
    • Fee tail estate: Inheritable only by specified heirs; not legal in the U.S.
    • Types of lease agreements encompass various arrangements depending on cost and conditions:
      • Cost of Living Lease: Rent adjusts with inflation.
      • Flat or Fixed Lease: Fixed rent for a set time.
      • Gross Lease: Tenant pays a flat rent; landlord covers operating costs, may have escalation clauses.

    Specific Lease Types

    • Land Lease: Long-term lease for land improvements; property reverts to land owner post-lease.
    • Net Lease: Tenant pays base rent plus various expenses, with increases tied to actual costs.
    • Percentage Lease: Base rent plus a percentage of gross income or whichever is higher.
    • Sale-Leaseback: Seller conveys property while leasing it back to maintain occupancy.
    • Sandwich Lease: Lease acquired from a previous lessee and subleased to another tenant.
    • Step Lease: Rent increases by a set amount periodically, based on estimated costs.

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    Description

    This quiz covers the fundamental concepts of leasehold and freehold estates in real property law. Explore various types of tenancy arrangements, such as tenancy at sufferance and fee simple absolute. Understand the distinctions and characteristics of each type of estate to enhance your knowledge in property law.

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