The notes below are intended only to supplement a complete and diligent review of the related chapter in your course text. Studying these notes alone is not expected to be adequate test preparation.

 

 

LEASEHOLD ESTATES

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An estate in land defines the degree of interest one has in real property. It defines ones status in the property. To be considered an estate, however, the interest must be one that is or will become possessory (having possession).

 

A non-Freehold or leasehold estate is one that:

 

• involves possession but not ownership

• is for a predictable duration and can be measured in advance

 

Leasehold estates include the following:

 

An estate for years:

• usually results for the formation of a typical lease

• has a definite beginning date and a definite ending date (lease starts June 1, 2006 and ends May 31, 2016)

• contrary to what  the the name implies, the period could be measured in days, weeks or months and still be termed an estate for years

• An estate for years automatically terminates. This of course is due to the fact that the parties agreed to the ending date when the the arrangement began.

 

A periodic estate or one from period to period:

• is a typical month-to-month lease

• The period does not have to be month-to-month. It could be week-to-week, quarter-to-quarter or whatever the parties agree to. However, the period is usually based on how the rent is being paid (weekly, monthly, quarterly etc.).

• there is no definite term and an ending date is not pre-established

• The estate automatically renews for like periods, one after the other. This will continue until one of the parties takes steps to terminate the arrangement.

• Termination requires that the terminating party provide proper notice to the other. Proper notice is one period.

• a key point to remember is that a periodic estate automatically renews

 

An estate at will:

• possession continues at the will of each party (term is unspecified)

• either party can terminate on a moments notice (theoretically)

 

An estate at sufferance:

• lowest possible form of estate

• possession of property without the consent of the owner

• usually results when a tenant remains in possession after the expiration of a lease

• tenant is referred to as a holdover tenant

• holdover tenant is not considered a trespasser because the tenant originally came into possession of the property legally and with the owners consent (a trespasser gains possession illegally)

• accepting rent during the holdover period extends permission and creates a periodic estate