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A Short Guide to Life Estate

A Short Guide to Life Estate

Life estates are based upon a measured life in being. It is usually limited to the life of an individual who currently holds the life estate. If, and when the individual passes away, the property 
Life estates are usually measured by the life of the individual who was given the property, or by the life of another. Life estates are most commonly created in one of two circumstances. First one being, when the owner of property transfers his or her interest to another person, based on the life of a third individual. In this case, if Pavel transfers land to Sergei during the life of Alexander, then Sergei owns the land for the remainder of Alexanders life. 
If Sergei dies before Alexander, Sergei’s heirs will inherit the property, and will continue to own it for as long as Alexander lives. Second circumstance is if Pavel transferred land to Alexander for life, Alexander can then sell the life estate to Sergei. In this event, Sergei and his heirs will be able to consume the land until Alexander passes away. In both scenarios, once Alexander passes away, the ownership of the property will be transferred back to Pavel, and once he passes away, his heirs will inherit the land. These tend to be known as “remainder interest”.
The process involved in creating a life estate deals with the transfer of property through a deed 
All in all, it is more of a benefit for the conveyor, rather than the conveyed. There is also a huge benefit for the remaindermen as well. The individual being conveyed to never gets to own the property, but must pay taxes and other fees applicable with the ownership. 
If affordable, they can purchase their own house rather than living on a life estate, which is like a ticking clock. Life estates are usually catered towards individuals on medicaid, or individuals who do not have the proper qualifications needed in order to own their own land.

Tenancy at Will

Tenancy at Will

A lease is a contractual relationship between a tenant, also known as a lessee, who acquires the right to use the property of another. There are two various forms of property, intangible and tangible, which could be leased. Intangible property consists of a carpet cleaner or a xerox machine, while tangible leasing revolves around automobiles, or any form of real estate. In the instances of leasing property, rent, also referred to as consideration, is paid to the landlord whose party is known as the lessor. 
The lease is a contract in which the landlord may prohibit certain things, while the tenant may have his own provisions on the lease as well. Other than the restrictions by the landlord, there maybe local regulations which may need to be follow as well, but aside from that, the tenant has control. No one can enter the property while there is a tenant, without the permission of the tenant. It is unlawful for the landlord to interfere with the quiet enjoyment of the tenant while he or she has possession of the property. 
A lease falls under the contract law of the applicable jurisdiction and therefore is deemed enforceable. Occasionally, according to where the property is located, a statute may require certain clauses to be stated within the lease itself. There are many specifics needed to be stated on the lease due to the complications that may arise later on in the relationship between the tenant and the landlord. Clarity is a must in order to the various details stated within the lease. The following elements are common on most leases:
          Names of the parties who are entering the agreement
          The starting date as well as the duration of the tenancy
          Specifying the property by address
          Stating the conditions regarding renewal
          Method of payment
          Specifics regarding the security deposit and the conditions for its return
 
          Statutes, default conditions and specific remedies
          Details regarding insurance, restrictive use, and responsibilities for maintenance.  
A tenancy at will, also referred to as an estate at will, is created based upon the discretion of the landlord, and the tenant. It can be an informal, or a formal agreement depending on the specifics set by the two parties going into agreement. This form of tenancy may be terminated at anytime based upon a reasonable notice from either party. It is rare, but quite possible to have a tenancy at will that requires no consideration or rent. 
Any verbal agreement regarding the lease being longer than 12 months is not enforceable unless in writing. Many residential leases convert into a tenancy at will after a 30 day notice, once a new lease is negotiated, the estate at will automatically terminates. There may also be a provision which states, if the lease is not renewed by a certain time, the estate at will terminates automatically. 
If the landlord creates the estate at will, not only could he terminate the lease, but so could the tenant. On the other hand, if the “at will” tenancy is created based upon the tenant, the landlord may not be able to terminate the lease due to the possibility or intent of a granted life estate or a fee simple estate. A tenancy at will may be terminated by the law in a few given scenarios listed below:
         If the tenant commits waste against the estate
         Tenant attempts to assign the tenancy
         The property is used for unlawful purposes
         Landlord transfers his interest in the property
         Landlord leases the property to another
         If the tenant or landlord dies
Since the creation of an estate at will may be formal or informal, the termination may be the same. If not restricted by the jurisdiction, a landlord may end an estate at will by just changing the locks, in some jurisdictions that is known as a constructive eviction, but others may allow it.

Tenancy for Years

Tenancy for Years

A lease is a contractual relationship between a tenant, also known as a lessee, who acquires the right to use the propertyreal estate contract      
        
             Names of the parties who are entering the agreement
             The starting date as well as the duration of the tenancy
             Specifying the property by address
             Stating the conditions regarding renewal
             Method of payment
             Specifics regarding the security deposit and the conditions for its return
             Statutes, default conditions and specific remedies
             Details regarding insurance, restrictive use, and responsibilities for maintenance.  
There are many different forms of leasing, one form which is quite common is a tenancy for years, also known as a fixed-term tenancy. In this form of leasing, the beginning date of the tenancy, and the end date, are both predetermined. The duration could be a week, all the way up to a couple years, it varies based on the agreement made between the lessee and lessor. The end date does not have to necessarily be determined when the exception of this type of tenancy comes into play. The exception revolves around the occurring of an event. 
For example, if Pavel is the lessor, and Nikolai is the lessee, in the lease, Pavel can state that the tenancy exists until he returns from the hockey World Cup in which the return is not yet determined, or he can state that the termination date will occur in the winter, due to the small ice rink he is creating in the backyard. As long as this is all stated within the lease, it is enforceable. The lease automatically expires on the date of termination or on the happening of the specific event, there is no process needed to satisfy the termination of the lease.