Start Here: 5 Things You MUST Know
Fee simple = fullest ownership. Life estate = ownership for one lifetime only, then it passes to the remainder holder
Joint tenancy = right of survivorship. Tenancy in common = NO survivorship (share goes to heirs via will)
Deed rankings (best to worst): General warranty > Special warranty > Bargain-and-sale > Quit-claim
First to record = first in priority. An unrecorded deed loses to a good-faith purchaser without knowledge
Condominium = you own your unit (real property). Cooperative = you own stock in a corporation (NOT real property)
1. Real Property Estates
Real property estate = the extent of one's legal interest in real property. Not everyone who "has" real property has the same level of rights. An interest = any right in real property, from full ownership down to a temporary right to walk across the land.
Fee Simple Estate
The most complete form of ownership. The owner can use, sell, lease, gift, or will the property with no time limit. This is what most people mean when they say they "own" a house.
Life Estate
Ownership that lasts only for the duration of someone's life. A life tenant can use and enjoy the property but cannot destroy or waste it because it must pass to someone else when they die.
Real-World Scenario: Life Estate
The Setup: Dad's will says "My house goes to Mom for her lifetime, and then to our children."
What Happens: Mom can live there, rent it out, and collect income, but she cannot tear it down or let it fall apart.
The Result: When Mom dies, the house automatically passes to the children. Mom had a life estate; the children had a "remainder interest."
Concurrent Estates (Multiple Owners)
| Feature | Joint Tenancy | Tenancy in Common | Tenancy by Entirety |
|---|---|---|---|
| Survivorship? | YES | NO | YES |
| Equal shares? | Must be equal | Can be unequal | Equal (50/50) |
| Who can own? | Any 2+ people | Any 2+ people | Married couples ONLY |
| On death? | Share goes to surviving owner(s) | Share goes to heirs via will | Share goes to surviving spouse |
| Can sell independently? | Yes (breaks joint tenancy) | Yes | NO — needs both spouses |
Dower & Curtesy
Dower (wife's interest) and curtesy (husband's interest) are historical terms for a surviving spouse's rights in the other's property. A surviving spouse can elect dower/curtesy even if the will provides less. Divorce bars dower and curtesy rights.
Community Property
Used in about 9 states (including California, Texas, Arizona). Most property acquired during marriage is owned equally by both spouses (50/50), regardless of whose name is on the title. Insurance relevance: Both spouses may need to be named on policies; community assets may be at risk from one spouse's liability claim.
Cooperative vs. Condominium
Cooperative
A corporation owns the building. Residents buy shares in the corporation that entitle them to occupy a unit. You do NOT own your apartment — you own stock. This is NOT real property ownership.
Condominium
Each unit owner owns their individual unit outright (fee simple) PLUS an undivided interest in common areas (lobby, pool, parking). Unlike a co-op, you actually own real property.
2. Real Property Sales
Contracts of Sale
A contract for the sale of real estate must contain three essential elements: (1) Must be in writing (Statute of Frauds), (2) Essential terms — description of the premises and the price, and (3) Nonessential terms — closing date, contingencies, etc.
Parties: Vendor = seller. Vendee = buyer.
Deeds — Transferring Title
Deed = the legal document that actually transfers title (ownership) to real property. Grantor = person transferring ownership. Grantee = person receiving ownership.
Requirements for a Valid Deed (MUST MEMORIZE)
1. Must be in writing
2. Grantor must be legally competent and sign
3. Must name the grantee
4. Must state the consideration
5. Must contain words of transfer
6. Must contain a property description
7. Must be dated
8. Must be delivered
9. Some states: grantor's seal required
10. Some states: witnesses required
11. Most states: notary acknowledgment
Types of Deeds (Ranked: MOST to LEAST Protection)
BEST
General Warranty Deed
The gold standard. Grantor guarantees clear title and promises to defend against ALL claims, even those arising before the grantor owned the property.
Special Warranty Deed
Grantor only guarantees against defects that arose during THEIR period of ownership. Does not protect against problems from before they owned it.
Bargain-and-Sale Deed
Implies the grantor has title, but makes NO warranties about defects. Buyer beware.
WORST
Quit-Claim Deed
The weakest form. Grantor transfers whatever interest they MIGHT have. Makes zero guarantees. Could be transferring nothing at all.
Real-World Scenario: Why Deed Type Matters
The Setup: You buy a house with a quit-claim deed. Later, a bank shows up and says the previous owner had an unpaid mortgage on the property.
What Happens: The bank has a valid lien on the property.
The Result: You are stuck. The quit-claim deed gave you no warranty protection. With a general warranty deed, the grantor would have been required to clear the title or compensate you.
3. Recording and Priorities
Why Recording Matters
Without recording a deed, no public notice exists that the property has been transferred. If the seller fraudulently sells the property to a second buyer who does not know about the first sale, the second buyer (who records first) may win. General rule: First to record = first in priority.
Real-World Scenario: Recording Priority
The Setup: Doug borrows $15,000 from his parents (unrecorded mortgage), then takes a $150,000 mortgage from Bank Y (recorded), and later Jerry obtains a $5,000 judgment against Doug.
What Happens: Doug defaults and the property must be sold.
The Result: Priority order: (1) Bank Y — recorded mortgage, first priority. (2) Jerry's judgment lien — takes priority over unrecorded interests. (3) Doug's parents — failed to record, giving no public notice. The parents' failure to record means they lose to later parties who had no knowledge of their claim.
Cheat Sheet
Print this page for quick referenceEstates & Ownership
- Fee simple = fullest ownership, no time limit
- Life estate = ownership for one lifetime
- Joint tenancy = survivorship, equal shares
- Tenancy in common = NO survivorship, shares can be unequal
- Tenancy by entirety = married only, both must consent
- Condo = own unit + share of common areas
- Co-op = own stock in corporation (NOT real property)
Deeds & Recording
- General warranty = best (all claims)
- Special warranty = only during grantor's ownership
- Bargain-and-sale = implies title, no warranties
- Quit-claim = worst (no guarantees at all)
- Deed requirements: writing, competent grantor, grantee, consideration, transfer words, description, date, delivery
- First to record = first in priority
Exam Trap Alerts
1. Joint Tenancy vs. Tenancy in Common
The critical difference is SURVIVORSHIP. Joint tenancy = surviving owners get the deceased's share automatically (bypasses the will). Tenancy in common = the deceased's share goes to their heirs via will. The exam loves testing this.
2. General Warranty Deed vs. Special Warranty Deed
General warranty protects against ALL defects in title history. Special warranty only protects against defects during the current owner's period. A buyer always prefers a general warranty deed.
3. Quit-Claim Deeds Provide ZERO Guarantees
The grantor is only transferring whatever interest (if any) they might have. Could literally be transferring nothing. Never accept a quit-claim deed in a purchase without a title search.
4. Condo vs. Co-op
Condo = you own real property (your unit + share of common areas). Co-op = you own stock in a corporation. This distinction affects insurance, financing, and what type of property interest you hold.
5. Recording Priority
First to record generally wins. An unrecorded interest loses to a good-faith purchaser without knowledge. Always record your deed immediately.
6. Divorce Bars Dower and Curtesy
Once divorced, a spouse loses their dower/curtesy rights in the other's real property. But a surviving spouse can elect dower/curtesy even if the will provides less.
Quick Reference Summary
Fee Simple
Most complete ownership. No time limit. Use, sell, lease, gift, or will.
Life Estate
Ownership for one lifetime. Cannot waste. Remainder passes on death.
Joint Tenancy
Equal shares + right of survivorship. Bypasses the will.
Tenancy in Common
Shares can be unequal. NO survivorship. Heirs inherit via will.
General Warranty Deed
Best deed. Protects against ALL title claims, past and present.
Recording
First to record = first in priority. Unrecorded = at risk.