Interests, Estates, and Types of Ownership

Georgia real estate pre-licensing study flow chart
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Ownership interests Non-ownership interests Freehold estates Leasehold estates Types of ownership
flowchart LR
    A[Real Property Rights<br/>The big umbrella]

    A --> I[1. Interests<br/>What legal right or claim exists?]
    A --> ES[2. Estates<br/>Who may possess, and for how long?]
    A --> OW[3. Ownership Types<br/>How is title held?]

    subgraph SGI[1. INTERESTS]
      direction TB
      I --> I1[Ownership Interest<br/>Title or future right to title or possession]
      I1 --> I1a[Present Interest<br/>Right to possess now]
      I1 --> I1b[Future Interest<br/>Right to possess later]
      I --> I2[Non-Ownership Interest<br/>A right affecting property without owning it]
      I2 --> I2a[Easement<br/>Right to use another's land]
      I2 --> I2b[Encumbrance<br/>Claim, lien, or limitation on title]
      I2 --> I2c[License<br/>Permission to use land, usually revocable]
    end

    subgraph SGE[2. ESTATES]
      direction TB
      ES --> FH[Freehold Estates<br/>Ownership for an uncertain duration]
      FH --> FH1[Fee Simple Absolute<br/>Greatest ownership estate]
      FH --> FH2[Defeasible Fee<br/>Ownership can end if a condition occurs]
      FH2 --> FH2a[Fee Simple Determinable<br/>Ends automatically on stated event]
      FH2 --> FH2b[Subject to Condition Subsequent<br/>May end if owner enforces right]
      FH --> FH3[Life Estate<br/>Ownership lasts for someone's lifetime]
      FH3 --> FH3a[Ordinary Life Estate<br/>Measured by tenant's life]
      FH3 --> FH3b[Pur Autre Vie<br/>Measured by another person's life]
      FH3 --> FH3c[Remainder<br/>Future interest in a third party]
      FH3 --> FH3d[Reversion<br/>Future interest returning to grantor]

      ES --> LH[Leasehold Estates<br/>Possession without ownership]
      LH --> LH1[Estate for Years<br/>Fixed start and end date]
      LH --> LH2[Periodic Estate<br/>Renews automatically]
      LH --> LH3[Estate at Will<br/>No fixed term]
      LH --> LH4[Estate at Sufferance<br/>Tenant stays after right ends]
    end

    subgraph SGO[3. TYPES OF OWNERSHIP]
      direction TB
      OW --> OW1[Severalty<br/>One owner or one legal entity]
      OW --> OW2[Co-Ownership<br/>Two or more owners]
      OW2 --> OW2a[Tenancy in Common<br/>Equal or unequal shares; no automatic survivorship]
      OW2 --> OW2b[Joint Tenancy<br/>Equal shares; may include right of survivorship]
      OW2 --> OW2c[Tenancy by the Entirety<br/>Spouses, if state recognizes it]
      OW2 --> OW2d[Community Property<br/>Marital system used in some states]
      OW --> OW3[Entity Ownership<br/>Corporation, LLC, partnership, trust, or estate]
      OW --> OW4[Condominium<br/>Own unit; share common areas]
      OW --> OW5[Cooperative<br/>Own shares; proprietary lease to occupy]
      OW --> OW6[Time-Share<br/>Use or ownership divided by time]
    end

    Q[Quick Test<br/>Owns property? Freehold + ownership type<br/>Possesses only? Leasehold<br/>Right or claim only? Interest]
    I2c --> Q
    LH4 --> Q
    OW6 --> Q

    classDef root fill:#20364b,color:#ffffff,stroke:#20364b,stroke-width:2px
    classDef heading fill:#eaf0f5,stroke:#315b7d,color:#172131,stroke-width:2px
    classDef interest fill:#f3faf5,stroke:#3d7b55,color:#172131
    classDef nonowner fill:#fbf6fc,stroke:#8f5c9b,color:#172131
    classDef freehold fill:#fff8f1,stroke:#b46b34,color:#172131
    classDef leasehold fill:#f1fbfc,stroke:#327b82,color:#172131
    classDef ownership fill:#fbfbf0,stroke:#6c6f2e,color:#172131
    classDef test fill:#fffdf4,stroke:#c9a23a,color:#172131

    class A root
    class I,ES,OW heading
    class I1,I1a,I1b interest
    class I2,I2a,I2b,I2c nonowner
    class FH,FH1,FH2,FH2a,FH2b,FH3,FH3a,FH3b,FH3c,FH3d freehold
    class LH,LH1,LH2,LH3,LH4 leasehold
    class OW1,OW2,OW2a,OW2b,OW2c,OW2d,OW3,OW4,OW5,OW6 ownership
    class Q test
          
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