An interest in land or more specifically
the degree, quantity, nature, and extent of
interest that a person has in real property.
The historical background of an estate lies
in the development of British law. The
status of the person holding a land interest
(a tenant), for a lord of the land (a
landlord), became known as an estate in the
land.
When disputes arose involving interest
in property, traditionally, they were
brought before the royal courts and
decisions ultimately formed part of common
law. Property disputes specifically became
known as real actions involving real
estates. In modern language, the term estate
is now used to define concepts of interests
in, or rights to deal with, land and its
components. Estates can be classified under
several general headings.
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
The highest estate or absolute right in
real property. The holder of such an estate
has the most rights and fewest limitations
and can use, sell, lease, enter, or give
away the property, or refrain from any of
these rights. This bundle of rights, known
as ownership, is subject to restrictions
imposed by laws of governing authorities.
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.
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