1) Ownership - Present + Future Estates Flashcards
present estates: kinds
1) fee
2) life
3) term
present estates: fee: kinds
1) absolute
2) defeasible
3) tail
concurrent ownership: kinds
1) joint tenancy
2) tenancy in common
3) tenancy by the entirety
future interests: can be in
1) grantor, or
2) third party
future interests in grantor: kinds
1) possibility of reverter
2) right of entry/power of termination
3) reversion
future interests in third party: kinds
1) executory interest
2) remainder
present estate vs future estate
present: grantee takes immediate possession
vs future: at some time in the future
fee estates: def
have the potential to last forever
fee simple: def
largest possible estate, w aggregate of all posible rights in the parcel, may last forever
fee simple: how to terminate
only 1 way: owner dies w/o heirs + property escheats to state
CL: how to convey FS
O to A + heirs (O to was a life estate)
modern: how to convey FS
O to A (presumed)
defeasible estate: def
estate that may terminate before its maximum duration has run. Terminates upon some happening or event.
defeasible estate: kinds
1) fee simple determinable
2) fee simple subject to condition subsequent
3) fee simple subject to executory interest
fee simple determinable: def (inc termination)
1) created automatically by durational language (“so long as,” “while” “until”)
2) terminates automatically on happening of the named future event.
3) when terminates, returns to grantor (so there was a possibility of reverter)
fee simple subject to condition subsequent: def: creation
1) CAN be created when CONDITIONAL language re the condition that will terminate. (“provided that,” “but if,” “on condition that”).
BUT the power of termination must be expressly reserved to the grantor (“Then A has power to terminate,” “then A may reenter”/retake”
where no specific power of termination, is a FS + the conditions are like a contract so can sue for damages
how to tell if FSD or FSSCS
if lang is ambiguous (unclear if durational or conditional) courts will interpret as FSSCS (which then might become an FS if no power of termination)
courts disfavor forfeiture
Fee simple subject to executory interest
def:
1) can be created by either conditional or durational language
2) on the happening of the terminating event, property will pass TO SOMEONE ELSE (vs FSSCS + FSD are both to grantor)
fee tail: def
early common law. Descendes to grantee’s lineal descendants (kids) only but can’t will or sell to someone else
fee tail: how
A to B and the heirs of his body
fee tail: modenr rule
disfavored, will be treated as fee simple absolute
life estate: def
1) lasts for the duration of the grantee’s life
2) can make defeasible (A to B for life, as long as B farms the land)
life estate: how
A to B for life
life estate pur autre vie: def
duration is measured by life of someone other than the grantee (A to B[or B’s estate] for the life of C)
life estate pur autre vie: multiple lives: majority rule
ex. A to B for the lives of C and D
majority rule: if more than one measuring life, interpreted as lasting until the death of the survivor
term estate: def
limited in duration (but term isn’t someone’s life)
result: essentially LLT rship
term estate: how
A to B for 20 years
possibility of reverter: def
future interest in grantOR that follows determinable estate
automatically created with FSD
when event happens, automatically kicks in and goes back to grantor
can be implied “A to B so long as B farms the land” creates possibility of reverter in grantor
possibility of reverter: transferability
CL: not transferrable (just will/intestancy) but can’t sell or transfer while alive
modern: freely transferable, devisable, descendible
possibility of reverter: RAP?
no, bc all future interests in grantor are exempt
power of termination, aka
right of reentry
power of termination, def
future interest that can be greated in grantor when grantor attempts to create: FS or life estate subject to condition subsequent
creation: not automatic, has to spell out in conveyance or dn exist
AND when event happens, property does not automatically revert. Gantor must exercise right of reentry, do something affirmative to retake
power of termination: transferrability
CL: only at death
modern: descendible + devisable, but many js still limit inter vivos
power of termination: RAP?
no, bc is interest in grantor so exempt
reversionary interest: def
a future interest retained by the grantor when the grantor transfers less than a fee interest so a third person [when there’s a gap–automatically gap fills]
ex. A to B for life (what about after B dies? reversion)
reversionary interest: transfer?
CL not intervivos
modern: every way
reversionary interest: RAP?
no – interests in grantor not subject to RAP
remainder: def
future interest in a THIRD PERSON, intended to take after the natural termination of the preceding estate
A to B for life, then to C
remainder: kinds
1) contingent
2) vested
remainder: vested: def
remainder vests at point that:
1) created in an ascertainable person, AND
2) not subject to any condition precedent, other than termination of hte preceding estate
remainder: contingent: def
any remainder that isn’t vested
vested remainder: Kinds
1) subject to total divestment
2) subject to open
vested remainder subject to total divestment: aka
vested remainder subject to condition subsequent
vested remainder subject to total divestment: def
presently vested, but may be terminated on the happening of a future event
ex. A to B for life, remaidner to C, so long as liquor is never served
vested remainder subject to open: aka
vested remainder subject to partial divestment
vested remainder subject to open: def
remainder made to a clas
has 1+ members who is ascertainable who has satisfied any conditions prior to vesting
but may have other members join class later
A to B for life, then to the children of C. C has one child
VRSO: when does class open?
inter vivos conveyance: at time of conveyance
testamentary conveyance: at death of testator
matters bc once someone gets vested interest it goes to their heirs if they die
VRSO: when does class close?
rule of convenience, to avoid RAP
RAP:
RAP applies to VRSO (only vested interest it applies to). if ANY member of class could potentially claim in a way that would violate RAP, will knock out entire class gift
rule of convenience; def
class closes as soon as one member of the class becomes entitled to immediate possession
if someone alive but hasn’t satisfied the condition, may try to satisfy the condition
executory interest: def
interest in 3rd party that cuts short the previous estate before it would have naturally terminated (vs. remainder: also in a 3rd party but waits for natural termination)
includes all 3rd party interests in fee estates since no natural termination
executory interests: kinds
1) shifting
2) springing
(difference just classification, no effect)
shifting exec interest: def
property passes from one grantee to another grantee
springing exec interest: def
property passes from grantor to grantee
executory interests: RAP
yes subject to RAP
