EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #20
June 10, 2008

IN THIS ISSUE:
Property of the Week
Real Estate Roundup: Leasehold Estates
Sponsor's Corner
Buyer's List Update
Auction News
Landterms.com Term of the Week: License

"We abuse land because we regard it as a commodity belonging to us. When we
see land as a community to which we belong, we may begin to use it with love
and respect."
- Aldo Leopold (American author, essayist, and naturalist)


PROPERTY OF THE WEEK
Off-grid Cabin on 40 Acres, Buck Mountain, Humboldt County, California
Remote property on Swayback Ridge area of Buck Mountain. Off-grid property has
great southern exposure and panoramic views of surrounding mountains. The
cabin has 3 loft bedrooms, a bathroom, living room and kitchen. Cabin is
unfinished and is a fixer. Spring near the cabin. Deep winter snow, abundant
summer sunshine. Good potential for solar and wind energy. Photos and
additional information at http://www.eaglestar.net/crch5-.html.


REAL ESTATE ROUNDUP:
Leasehold Estates in Real Property
This week we continue our series on title, estates, tenancies, and deeds with
the first of two articles on leasehold, or less-than-freehold, estates. Whole
books could be written about each of these complicated topics; the short
articles and FAQ's offered here are merely general summaries of each term or
concept. We try hard to conduct rigorous research into each subject to provide
pertinent information, but each state in the U.S. has different real estate
laws, codes, and rules. Readers should be aware that legal terms, processes,
and procedures described in these articles may be used or practiced differently
in their states or counties. If things are done a little differently in your
neck of the woods, please let us know. We'd love to hear from you.

We'd like to make a clarification about estates in real property from Issue 18.
Estates pur autre vie, which last for the duration of the life of some person
other than the life tenant, are technically a type of conventional life estate.
This may not have been clear in our article. If you would like to review any
of the previous articles or FAQ's in this series, please visit
http://www.eaglestar.net/newsletter, then use the links on the right to
navigate to the issues of your choice. Prior pieces in the series are:
General Title FAQ's (Frequently Asked Questions): Issue 14
Types of Title FAQ's (allodial title, eminent domain, escheat, police power):
Issue 15
Types of Title FAQ's (feudal title, Torrens title, strata title, company
title): Issue 16
Estates in Real Property (freehold estates, fee simple, life estates, qualified
fee): Issue 18

In Issue 18 we discussed freehold estates, which are interests in real property
that are free of other interests and are estates of ownership. Leasehold
estates, also known as less-than-freehold estates, are lease or rental
interests and do not constitute legal ownership of real property. In fact,
leasehold estates are technically considered to be personal property and not
estates in real property at all. Holders of leasehold interests (tenants) have
permission to possess and use real property for a specified period of time, in
accordance with local laws and the terms of the lease agreement. This
agreement is a legal contract between the holder of the leasehold interest (the
tenant or lessee), and the owner of the property (the landlord or lessor),
which permits the tenant to use the property in return for rent payments or
other consideration. "Other consideration" can include things like labor,
goods produced from or on the property, or even love and affection. With a
leasehold estate, the landlord retains a right of reversion, which allows him
or her to recover possession of the property once the lease or estate ends.
This interest in the property retained by the landlord is known as a "leased
fee estate with reversionary right" (also called "leased fee estate plus right
of reversion" or "plus reversionary right").

Types of Leasehold Estates
There are four basic types of leasehold estates, with each characterized by
different landlord-tenant relationships and lease periods. Each of the
different leasehold estates is also known as a tenancy, referring to the manner
in which an estate or interest in real property is held. Whether it is called
a leasehold estate or a leasehold tenancy is a matter of preference and local
custom; the terms as used in this sense are synonymous. The types of leasehold
estates are: estate for years (tenancy for years), estate from period to period
(periodic tenancy), estate at will (tenancy at will), and estate at sufferance
(tenancy at sufferance).

Estate for Years (Estate for Term, Tenancy for Years)
An estate for years is a common type of residential leasehold estate. The term
"years" does not really refer to any specific period of time. Instead, it
refers to the fact that this estate has a duration that has been clearly stated
and defined in the lease agreement. This duration can indeed be years, but it
can also be months, weeks, or even days. An estate for years differs from
other leasehold estate in that it has both a starting and an ending date. When
the estate ends, the tenant must vacate the premises and surrender possession
to the landlord, unless a new lease agreement is signed by both, or the tenant
exercises an option to renew (provided this option was included in the lease
agreement). Neither the tenant nor the landlord is required to give notice
prior to the end of an estate for years, since it is presumed both are aware of
the end of the estate as described in the lease agreement. Neither party may
terminate the lease before its expiration date unless both agree to do so or
the lease contract has been breached. A tenant with an estate for years has
the right to use and possess the premises even if the landlord dies or sells
the property to someone else, except in cases where the lease agreement
contains a clause that states otherwise. If the lease agreement has an option
to renew, the tenant may exercise this right even though ownership of the
property has passed from the landlord to someone else.

Estate from Period to Period (Periodic Tenancy)
Even more common in residential leases than an estate for years, an estate from
period to period is a leasehold estate with an initial period of tenancy that
renews automatically unless either the tenant or landlord gives notice to the
other of his or her intent to terminate the lease. The initial period is
defined in the lease agreement, and can be week-to-week, month-to-month,
year-to-year, or any other time period. The lease agreement for periodic
tenancy has no end date. Instead, the lease is automatically renewed for the
defined period when rent is offered and accepted. Since there is no
agreed-upon end date, notice is required for either party to terminate the
lease. Local law and the terms of the lease contract determine how much notice
is required; 30 to 60 days notice is usually all that is required for the
termination of a residential lease. If the landlord dies or sells the
property, the tenant has the right to continue with the terms of the lease
until the end of the next period. Proper notice must be given by the new owner
in order to terminate a periodic tenancy.

Many lease agreements initially create estates for years, with both starting
and ending dates for the tenant's use of the premises. Often, an option to
renew for an additional lease term (with an end date) or to convert the estate
for years to an estate from period to period (of indefinite duration) is
included. If a tenant with an estate for years does not vacate the property
once the lease has ended, a holdover tenancy is created. At this point, the
landlord may evict the tenant, since the lease agreement has been broken.
Alternately, the landlord may grant the tenant an estate from period to period
and allow the tenant to continue to possess the property until notice of lease
termination is given. If this occurs, case law shows that the periodic tenancy
that has been created usually cannot exceed the duration of the estate for
years or 1 year, whichever is less. For example, if a tenant has a 3-month
lease and holds over after it expires, the new periodic tenancy cannot exceed 3
months. If the estate for years was to last for 2 years, the tenant may only
hold over for 1 additional year, provided the landlord allows him or her to do
so. In some states, however, a holdover tenancy is automatically considered to
be either an estate at will or an estate at sufferance, dependent upon whether
or not the landlord has given permission for continued use of the premises.

Estate at Will (Tenancy at Will)
An estate at will differs from an estate for years and a periodic tenancy in
that it has no end date, and no defined initial period of tenancy. In other
words, an estate at will continues as long as the landlord allows the tenant to
possess the property. Notice to terminate the lease by either party must be
given according to the lease and local law. Although there is no defined
period of tenancy included in an estate at will, regular rent payments must
still be made. Some states do not recognize this type of lease, and consider
it to be a periodic tenancy. Unlike either periodic tenancies or estates for
years, the death of the landlord or the tenant ends an estate at will.

Estate at Sufferance (Tenancy at Sufferance)
We previously defined an estate to be an interest in real property that allows
one to possess that property. It might seem strange, then, that an estate at
sufferance is created when a tenant's possession of property is unlawful and
without the consent of the landlord or property owner. However, a tenant at
sufferance has possession of real property, and therefore has an interest in it
- and a possessory interest constitutes an estate. In addition, common law
often provides a means for those who possess property to claim it as their own
after a certain period of time. Two common examples of estates at sufferance
are when a tenant for years holds over after the expiration of the lease term,
or when a homeowner remains in possession of real property following a
foreclosure. The landlord of a tenant at sufferance cannot physically remove
the tenant from the property, but can begin eviction proceedings against him or
her.

Next in this series: Valid Lease Requirements, Types of Leases, and Common
Lease Issues and Questions


SPONSOR'S CORNER
We'd like to extend our thanks to this week's sponsor, Angela Privett at
Arrowhead Real Estate, Kodak, Tennessee. Whether you are looking for prime
investment properties or selling your house, log cabin, or condo, Angela
Privett is available to assist you. Angela is a market leader in the Smoky
Mountains region, and a respected marketer of investment real estate in
Gatlinburg, Pigeon Forge and Sevierville. See Angela Privett's listings on
Eaglestar.net at
http://www.eaglestar.net/Properties/Multiple_Listings/Angela_Privett_Treadway/index.html.


BUYER'S LIST UPDATE
http://www.eaglestar.net/Land_Buyers_List/index.html
Place unlimited free buyer's ads on Eaglestar.net. Go to
http://www.eaglestar.net/pages/buyers.html to begin.

Looking in: North or South Tier New York. Interested in buying large parcel of
land (200-600 acres). Can be farm, raw, or hunting land. Please refer to
buyer #20731.

Northern Oregon, near Portland or accessible: Seeking 5-10 acres, possibly
with underground lines and water. Please refer to buyer #20704.

Looking in: Anywhere, USA. If you own the land, we will do the rest! Looking
for land owners that want to joint venture! If you have the land, we will fund
everything else! Construction and all! Call me and let's talk! Please refer
to buyer #20723.

Lafayette, Louisiana area (St. Martin or Lafayette Parishes). Wanted: 5-10
acres of wooded and undeveloped land. Please refer to buyer #17208.


AUCTION NEWS
http://www.eaglestar.net/Land_Auction_Calendar/index.html

Cairo, Grady County, Georgia: Land and Home Auction
Saturday June 21, 2008
Preview June 20, 2:00pm 2104 Lower Hawthorne Trail, Cairo, GA
18.91+/- acres, offered divided, 4 tracts, 1.5-7 acres each, high bidder's
choice.
2008 Ranch style home, 3BR 2BA, 1530 sq. ft., fenced and gated, with road
frontage on Tract 1. This property is currently a working horse farm. Ponds on
Tracts 2 and 3. Located 7 minutes from Cairo, GA; 11 minutes to US 27; 14
minutes to Havana; 32 minutes to Tallahassee, FL.
Equipment to be auctioned separately includes: tractors, trailers, hay
equipment, round pens, round walkers, stalls, horse tack, and other personal
property selling separately. Scenic photos, aerial photos, and details at
http://www.eaglestar.net/Detailed/20696.html.


LANDTERMS.COM TERM OF THE WEEK
http://landterms.com
Each issue we feature a real estate, forestry, natural sciences or other
land-related term from our partner site, Landterms.com.

This week's term: License
1. Revocable, non-transferable permission to use the property of another for a
specific purpose.
2. a. Legal authorization to perform or engage in certain specific acts (e.g.,
real estate license, driver's license, business license, etc.)
b. A document or permit that provides evidence of such authorization or
permission.

Find definitions for terms, phrases, abbreviations, and more at Landterms.com.
Over 35 categories of terms including Real Estate, Forestry, Survey, Land
Measurement, Quotations, Title and Title Insurance, Zoning, and Abbreviations.
http://landterms.com/categories.html


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