LAND IN ESTATE MANAGEMENT CONTEXT

The land is commonly thought of as the ground or soil, but from a more legal standpoint, land

ownership also includes possessions and control of minerals and substances below the earth’s

surface, together with the airspace above the land up to infinity. Thus, land is defined as the

earth’s surface extending downwards to the centre of the earth and upward to infinity, including

those things permanently attached by nature, such as trees and water.

ESTATES IN LAND.

The size of the interest which a person holds in real property in English law is called an “Estate

in land.” It can be said to be an indication of category right being held by an individual. When

individual have rights to hold land for use, it means they have they have an estate in land. one

can further say that an estate in land confers an ownership structure of which individuals can

only hold an estate in land. Two classification of estate in land exist. These are: Freehold estates

and Non-freehold estates. They have imprecise duration and can last for a lifetime or forever.

FREE HOLD ESTATE

Freehold Estate: - Is defined as an interest in real property which is a life estate or an estate of

uncertain or undetermined duration (having no stated end).

Simply, freehold interest means absolute ownership in perpetuity and free from anybody. It is

also regarded as the broadest and most complete right any individual can hold.

TYPES OF FREEHOLD ESTATE

Life estate – A life estate is limited in duration to the life of the owner, or to the live or lives of

some other designated person(s). A life estate is an interest in real property which is held for the

duration of the life of a designated person. It may be limited by the life of the person holding it
or by the life of another person. For example, Anne can give a property to Dan for the life of

Anne. Dan would be the life tenant.

A life tenant receives the property and is responsible for maintenance of the property and paying

taxes. If a life tenant allows a property to deteriorate, it would be committing waste; a life tenant

cannot commit waste.

A life tenant cannot leave a property to anyone in their will. However, a life tenant may sell,

mortgage or lease the property for the duration of the estate, and thus all contracts would be

terminated upon the death of the life tenant.

For example, if Dan dies and the property goes back to Anne, Anne would have the estate in

reversion. If Anne dies, then the property would not be Dan’s because he had it as long as Anne

was alive. Upon Anne’s death the property would go to Lisa, and then Lisa would have the estate

in remainder.

2. Fee Tail

Fee tail means an estate of inheritance in real property which cannot be sold, devised by will, or

otherwise alienated by the owner. This property can only be passed by operation of law to the

owner's heirs upon his/her death. The rule of fee tail has been abolished in all but four states in

the United States:

3. Fee simple absolute

Fee Simple – the holder is entitled to all rights in the property. It is the highest type of interest in

real estate recognized by law. The estate is of unlimited duration, and when the owner dies, the

estate passes to the owner’s heirs.

Fee simple absolute represents highest type of interest and absolute ownership of real property

recognized by law. Fee simple absolute is the greatest interest in a parcel of land that one can

possibly own without any restriction. The estate is of unlimited duration, and when the owner

dies, the estate passes to the owner’s heirs. This is the type of titles generally applicable in most

towns. But the moment they sell, it is no longer a freehold. With freehold lands, getting your C

of O is faster.

LEASEHOLD ESTATE

This is an estate or interest in land held for a “term certain” or on a periodic tenancy. This is

simply an agreement by which tenancy is granted by a landlord to a tenant. A lease hold interest

is normally subjected to payment of annual rent and observance of covenants’ contain in the

lease agreement.

Leasehold estates exist for definite periods and are not inheritable. They are created through

written, oral leases and rental agreements. Leasehold estate are classified and identify according

to their duration the four common lease hold estate are: -

1. Estate for a term of years

2. Tenancy from year to year

3. Tenancy at will

4. Tenancy at sufferance

1. Estate for a term of years: - This type of estate with definite stated period. It has

beginning and a certain end which is called term. The estate may determinate before the
 time by agreement of the parties under the conditions stated in the list by application of

law.

2. Tenancy from year to year: - This is also called periodic tenancy. This is the tenancy that

exists for more than a year. At the end of the year the lease is terminated and new lease

may be agreed upon it can be terminated before the expiration of the lease agreement by

issuance of quit notice. Example monthly or yearly rent paid for use of real property

3. Tenancy at Will: - An estate at will is an estate of indefinite duration that can be

terminated at the will of either the landlord or the tenant. It may arise by implication or

by express agreement. It can operate in two ways: -

a. Where accommodation is given to a tenant as a right of been employed by is

master. For instance, a house boy given a room by is master. If the boy is

eventually fired, the room will also be affected.

b. Where the normal lease as expired and the landlord gave and indirect or implied

indication that the tenant can continue staying. However, anytime he lies, it can

give quit notice to the tenant. An estate at will automatically terminate on the

death of the either the landlord or the tenant.

4. Tenancy at sufferance: - An estate at sufferance occur when a tenant comes into

possession of a property lawfully and then after the expiration of the lease, continue to

occupied the property without the concert of the landlord.

In conclusion, knowing the type of house you want to buy as an investor is necessary as the

knowledge of it will help you in the valuation and bargaining. In venturing into Real Estate in
Nigeria, you need the help and guide of a Real Estate expert to avoid the pitfalls associated with

Real Estate in Nigeria.

TYPES OF ESTATE IN LAND IN NIGERIA