Question

Discuss 1) nonpossessory interests, 2) freehold estates, 3) leasehold estates and 4) types of co-ownership of real property. Then give one type of each and include at least one example. This needs to be in short format, not a list. PLEASE NO PLAGIARISM.

Answer 1

I have provided below a short summary of all 4 questions, mentioned their types, explained one of the types under each question with an example

LEASEHOLD ESTATE:

Leasehold estate refers to a temporary agreement in which the renter is granted the right to hold/own a property for a specific period. The lease agreement that is signed by both the owner and the renter outlines the right and obligations of both the parties during this period. It has four types 1) Leasehold estate for years 2) Leasehold estate from period to period 3) Leasehold estate at will 4) Leasehold estate at sufferance

Leasehold estate from period to period:

In this form of agreement an initial period of tenancy and length of agreement are specified. But after the specified period the agreement renews itself automatically and a fresh tenure starts unless one of the parties issues a notice (30-60 days prior contract termination) to terminate the lease. For Example: if A leases one hectare of land to B for cultivation of Paddy under the leasehold estate from period to period for a period of 6 months, B can continue the cultivation of paddy even after 6 months as A has not issued a notice to terminate the lease

FREEHOLD ESTATE:

Freehold estate is an estate on which person is given an exclusive right by the owner to own the property for an undefined length of time. There are 3 variations of freehold estate namely 1) Fee simple absolute 2) Fee simple defeasible 3) life Estate

Fee Simple defeasible:

Fee simple defeasible is developed when the owner gives absolute right for a person to possess the land but places a condition, the breach of which will result in the land being returned to the owner or his heirs. For example, A specifies B can have absolute right over the 10 hectares of land A owns only if B uses the land to build an orphanage within a period of 5 years. Till 5 years B enjoys absolute ownership to the land but after completion of 5 years if B has not built an orphanage as specified by A then the contract is revoked and the property gets returned to A/ A’s heirs

NON-POSSESSORY INTEREST:

Non-possessory interest is a general term used to describe the right held by a person over another person’s land. Now this right can be developed by means of an agreement or brought about by an action of court. There are 5 types of Non-possessory interests 1) Easements 2) Profits 3) Restrictive covenants 4) Equitable servitudes and 5) Licenses

Restrictive covenants:

Restrictive covenants are promises made by one party to another on the usage of land one purchases. For example: A purchases a home from B. B agrees to sell the property only if the home is used for residential purposes. A agrees and buys it. Now A cannot use this property for business needs as specified by restrictive covenants of the contract

TYPES OF COOWNERSHIP:

When more than one owner is listed by law or agreement to hold a property with each owner having specific rights as defined by the agreement then it is said to be co ownership. The basic types of Co ownership are 1) Tenancy in Common 2) Joint tenancy with right of survivorship 3) Community Property 4) Tenancy by Entirety

Tenancy in Common:

This is a type of coownership with no survivor rights. This means upon death of one of the owner in the coownership his part of the rights doesn’t get transferred to the surviving owners. For Example, if A and B are co-owners each owing 50% of the property by agreement. Upon death of A, B will not be entitled 100% ownership of the property. Instead the 50% of A’s share will get passed on the inheritors of A’s will or if in case there is no such will get passed on to his heirs