|
Legal Environment of Business Dr. John Dehrer-Wendt Interests and Ownerships in Real Property |
| Interest | Definition |
| Fee Simple Absolute "Land to X" |
Owner holds all the rights in the property and can sell or transfer them as they wish. When owner dies, property can be transferred either by will or inheritance to heirs |
| Fee Simple Defeasible "Land to U of M so long as the land is used for educational purposes" |
Ownership is conditional, not absolute. If the condition fails, fee simple can be terminated |
| Life Estate "Land to X for as long as she lives" |
Ownership rights last for the life of a specific person. After person dies, rights revert to the original owner to a party designated by original owner |
| Leasehold Estates | Tenancy at Will – Tenancy for as long
as both parties Tenancy for Years – Tenancy for a period stated by a contract Periodic Tenancy - Tenancy for a period determined by frequency of rent payments Tenancy at Sufferance – Tenancy without a legal right |
| Nonpossessory Interests | Easement – The right of a person to make a limited use of another’s property (e.g. a path across |