Ownership: Estates and Forms of Holding Title
How a person holds title determines what they can do with the property, what happens when they die, and how creditors can reach it. Brokers must recognize the main estates in land and the ways two or more people can co-own real estate.
Freehold Estates
A fee simple absolute is the highest and most complete form of ownership, lasting indefinitely and passing freely to heirs. A life estate lasts only for the lifetime of a named person, after which the property passes to a remainderman or reverts to the grantor. Defeasible fees can be lost if a stated condition is violated. Recognizing the estate helps a broker understand exactly what interest a seller can convey.
Concurrent Ownership
Tenancy in common gives each owner a separate, inheritable share with no right of survivorship, so a deceased owner's interest passes to their heirs. Joint tenancy includes the right of survivorship, so the surviving joint tenants absorb a decedent's interest automatically, avoiding probate. Tenancy by the entirety is a special form for married couples that adds survivorship plus protection against one spouse's individual creditors. Severalty means one person owns the entire property alone.