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Property > 10) Future > Flashcards

10) Future Flashcards

1
Q

reformation/cy pres

A

court changes “offending language” to make conveyance good

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2
Q

vested remainder– is there a reversion?

A

NO – o loses reversion when it vests

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3
Q

wait and see

A

wait and see if future interest vests w/in 21 year period (vs speculating about whether or not it will). If yes good, if not destroyed

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4
Q

life in being

A

persons named in the conveyance or intervening generations(?), alive and ascertained at time of the dash “measuring life” or “validating life”

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5
Q

subject to condition subsequent

A

CONDITIONAL WORDS O (or whoever has the right) has to affirmatively enter to get it back – reversion not automatic!!

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6
Q

consent to sell clauses – enforceability

A

usu not enforced “repugnant to the fee”

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7
Q

shifting executory interest

A

shifts from someone else (not from O), and comes into being bc it cut short a prior estate O to A, but if ceases to be used as a school during A’s lifetime, then to B B’s e.i. is shifting bc comes from A. sometimes the unborn children have it

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8
Q

normal intestate hierarchy

A

spouse (and kids from other marriage) kids parents siblings certain other relatives

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9
Q

cy pres in trusts – how court decides if it’s necessary or not (old vs new way)

A

–used to be burden on party seeking reformation to prove “general charitable intent” but now more common –older cases, had to be basically impossible to achieve original purpose of trust but now often ok if just broadly impractical, wasteful, unreasonable

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10
Q

rule of convenience

A

class closes when prior estate ends (eg life estate holder dies) – people who would’ve vested later don’t get any property interest

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11
Q

life estate per autre vie

A

life estate measured by someone else’s life: O to A for the life of B. B is the measuring life.

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12
Q

future interests in grantOR

A

reversion possibility of reverter right of entry

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13
Q

no relatives to inherit?

A

property escheats to the state

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14
Q

life estate: duty: voluntary waste

A

acts of COmission to damage property (cutting down trees, demolish the house)

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15
Q

life estate: duty to keep property in repair: 3 kinds of waste to not commit

A

1) voluntary 2) permissive 3) ameliorative

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16
Q

restraints on alienation (CL vs now)

A

CL per se void, now: subject to general test of reasonableness. BUT total restraint on alienation generally void.

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17
Q

reasonableness test for restraints on alienation

A

weigh harm of restraint vs utility of enforcing

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18
Q

F: charitable trust to create public park for whites only, H: can’t apply cy pres when clear violation of testator’s intent, so trust fails (partly bc so specific) dissent: state action $ used for park

A

Evan v. Abney

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19
Q

term of years: reverter?

A

has REVERSION IN O, unless otherwise specified

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20
Q

4 present possessory interests in property

A

1) FSA 2) Fee tail 3) life estate 4) term of years

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21
Q

Northwest Real Estate Co v. Serio

A

F: deed says can’t sell or rent it for 5 yrs w/o consent of old owner H: void as repugnant to FS

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22
Q

vested

A

certain who will get the future interest

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23
Q

O to A for life

A

life estate

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24
Q

trusts–def

A

grantor conveys property to trustee, for benefit of beneficiary – trustee has legal title but bound to use the trust for the beneficiary

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25
Q

life estate: ameliorative waste

A

improvements that may improve value of property but remainderman dn nec want (destroys house and makes mansion) NOTE: this was actionable at common law but less favored now

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26
Q

W reasonableness test for restraints on alienation

A

weigh the utility of the restraint against the injurious consequences of enforcing the restraint (this conveyance and future precedent)

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27
Q

steps to analyzing present estates and future interests (6)

A

1) what is the PPI? 2) what limitations are there (if any)? 3) is there a future interest? 4) future interest enforceable? 5) has trigger event occurred? 6) what is legal effect?

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28
Q

RAP modern reforms (3)

A

(only if told we’re using in W): 1) wait and see 2) reformation/cy pres 3) uniform/statutory rules

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29
Q

FSSEL and event could take place years from now

A

ex: O-A+ heirs as long as used as school, otherwise C+heirs what if they stop using it as a school after 100 years…C’s interest could come into being after A’s life + 21 years

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30
Q

fee simple subject to executory limitation

A

future interests belong to someone other than the grantor doesn’t matter if the language sounds like FSD or FSSCS can be from gap in seisen

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31
Q

Violates RAP: age is a condition precedent, parent alive, age greater than 21+ gestation

A

contingent remainder to unnamed grantee who will take at an age greater than 21, RAP is violated if grantee’s parent is still alive O to A for life, then to B’s first child to reach 25 and heirs

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32
Q

FSD vs FSSCS vs FSSEL

A

FSD: condition in favor of O FSSCS: condition for O if O retakes FSSEL: condition in favor of 3rd party

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33
Q

contingent remainder

A

haven’t vested bc one of the 2 conditions not met. either: we dnk who grantee is OR condition not satisfied yet

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34
Q

precatory terms

A

no legal effect, just show intent

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35
Q

McIntyre v. Scarbrough

A

F: D had life estate and lived on land in mobile home, sold land to P. Ps sue for waste. H: Life estate holder has to leave bc waste extreme (dn pay taxes or maintain property) N: unusual result – usu need acts of commission for extreme remedies, + principle against forfeiture

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36
Q

H: RAP applies to option to purchase commercial property

A

Symphony Space Inc v. Pergola Properties Inc

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37
Q

life estate: who pays mortgage?

A

LE holder: pays interest remainderman: principal

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38
Q

fee tail ex

A

O to A “and the heirs of his body”

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39
Q

Rule Against Perpetuities

A

No interest is valid unless it must vest, if at all, w/in a life in being + 21 years + period of gestation

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40
Q

contingent remainder examples (3)

A

child (none born yet) condition not sure to meet terms of art like “widow” (who will be the widow?)

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41
Q

2 other obsolete CL doctrines re transfer of property

A

1) Rule in Shelley’s case 2) doctrine of worthier title

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42
Q

joint tenancy: encumbrance exception

A

ok unilateral encumbrance but can’t encumber cotenant’s right of survivorship

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43
Q

presumption against future interests

A

and in favor of FSAs

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44
Q

remainder

A

follows naturally from the prior estate – waits until prior estate ends (eg term of years, life estate) – dn terminate prior estate

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45
Q

exectuory interests: 2 kinds

A

shifting springing

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46
Q

contingent remainder often triggered by one of these (4)

A

1) birth 2) age 3) actiity/stated condition 4) key words (heir, widow)

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47
Q

subject to condition subsequent: who gets what

A

A: present possessory interest O: right of entry

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48
Q

what we need to know by the time of the life in being + 21 years

A

don’t care if they GET it by then just if we will KNOW that they will, or that no one will. We need to know WHEN we’ll know: exactly who they’ll get the interest, that they’ll get, what % they’ll get. INCLUDES: all conditions will have occurred and no more people can be added to class of recipient

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49
Q

devisees

A

inhereit under a will

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50
Q

selling life estate?

A

yes, you can if A sells to X, then X has what A had X has life estate per autre vie – A remains the measuring life

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51
Q

VR subject to partial divestment: def

A

we know who will have some of the interests, but something could happen in the future to make the interests shrink O to A for life then to B’s children in equal shares C is a child but more could be born subject to rule of convenience

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52
Q

springing executory interest

A

interest in favor of a 3rd person where there has been a gap in ownership from the prior estate FROM GRANTEE (gets possession after natural termination of prior estate)

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53
Q

RAP could apply to: (4) (and one is a quasi-exception)

A

1) contingent remainders 2) executory interests 3) vested remainder subject to partial divestment *usu not an issue now bc rule of convenience* 4) options to buy and rights of first refusal

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54
Q

term of years ex.

A

O to A for 10 years

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55
Q

contingent remainder – is there a reversion? if unstated

A

every contingent remainder has a reversion in O, even if not stated UNTIL IT VESTS. THEN O LOSES REVERSION.

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56
Q

life estate: duties of life tenant: can’t injure or dispose of property to injury of rights of remaindermen – def

A

ok to use for LE’s benefit as has been used before. If open mine, ok for LE to mine and take the minerals. But if no previous mine, not ok start one

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57
Q

RAP DN APPLY TO: (3)

A

interests vested at time conveyance made, ie: 1. all PPIs 2. all interests of grantor (reversion, possibility of reverter, right of entry) 3. vested remainders absolute/total divestment

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58
Q

O to A

A

fee simple absolute

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59
Q

group gift

A

ex: O to A for life, then to B’s children to reach 25 bc unborn w shifting executory interest W HAS RULE OF CONVENIECE..vested members will take

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60
Q

life estate: duty to keep property in repair: exception/limitation

A

dnh to improve value of property

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61
Q

consent to sell clauses: condos

A

enforced if requires assn to act reasonably OR form of preemptive rights: assn retains option to buy back from buyer

62
Q

trust

A

legal arrangement where one person/entity holds title to preoprty for benefit of another

63
Q

testator/testatrix

A

one who dies leaving a valid will

64
Q

alternative contingent remainder (and–reversion?)

A

2 “ifs” O to A for life, then to B and heirs IF B gets married, if B dn get married, then to C+ heirs *O keeps implied reversion here

65
Q

Fee simple determinable

A

words OF DURATION –reverter automatic when condition not met

66
Q

vested remainders and reversions?

A

no – vested remainder creates no reversion

67
Q

RAP assumptions

A

no sperm banks, surrogacy etc. BUT DO HAVE THE FERTILE OCTOGENARIAN

68
Q

F: will to daughter “keeping free from encumbrances” and if does encumber then will give to kids. Daughter dn leave to granddaughter. GD argues it was only a life estate w remainder, not FSA H: LE w remainder based on intent. It can’t be what it looks like which is FS w conditions

A

Edwards v. Bradley

69
Q

fee tail: what do courts do when someone tries to make one?: minority

A

allow FT for 2 generations (where A is generation 1), in 2nd gen converts to FSA

70
Q

rule of convenience – applications beyond kids

A

you only have util (eg life estate holder dies) to meet the condition…class is closing (“if B graduates from law school”)

71
Q

future interests: technical process (6 steps)

A

1) classify the possessory estate 2) ID the limitations if any 3) is there a future interest 4) is the future interest enforceable? 5) if yes, has the trigger event occurred? 6) if yes, what is the legal effect?

72
Q

requirements to vest (2)

A

AT TIME OF VESTING: 1) grantee is ascertained (we know who B is) (includes B must have come forward if B is a secret child) 2) any conditions that B must meet are met

73
Q

F: deed says can’t sell or rent it for 5 yrs w/o consent of old owner H: void as repugnant to FS

A

Northwest Real Estate Co v. Serio

74
Q

steps to analyzing RAP

A

1) label the conveyance and interests 2) does RAP potentially apply to this conveyance? 3) If yes, is it violated? 4) if yes, remedy?

75
Q

O to A for the life of B

A

life estate per autre vie

76
Q

life estate: duty to keep property in repair: 2 components

A

1) pay certain costs 2) not commit waste

77
Q

Subject to condition subsequent: examples

A

O to A but if not used as a school, then O can reenter and retake “on the condition that” “provided that”

78
Q

life estate: duty: permissive waste

A

acts of Omission (failure to make repairs on home)…

79
Q

2 kinds of remainders

A

vested contingent

80
Q

fi: fee simple absolute

A

the largest estate you can get – every stick in the bundle, do whatever you want with it

81
Q

future interests in grantEE

A

remainders executory interests

82
Q

FSD vs FSSC: which do courts prefer and why?

A

FSSC bc presuption against forfeitures (bc reversion not automatic)

83
Q

fee tail

A

mostly obsolete. will pass to actual blood relatives until bloodline runs out

84
Q

times when O can convey

A

at death, OR WHILE ALIVE

85
Q

Johnson v. Whiton

A

F: will “to Sarah and her heirs on her father’s side 1/3 part of all my estate” H: dn limit Sarah’s ability to alienate bc can’t create a new estate so it’s a FSA

86
Q

Fee simple determinable: examples

A

O to A so long as (while, during) use for residential purposes

87
Q

consent to sell clauses: exceptions

A

charities condos

88
Q

COMMON VIOLATIONS OF RAP (4)

A

1) age is a condition precedent and parent is alive and age is greater than 21+ gestation 2) FSSEL and event could take place years from now 3) unborn spouse trap 4) group gift

89
Q

ameliorative waste: sometime exception

A

complete and permanent change of surrounding conditions has deprived property of its value as prev used

90
Q

fee tail: what do courts do when someone tries to make one?: majority

A

give an FSA instead

91
Q

reversion

A

when future interest ends naturally, it automatically reverts to grantor unless assigned someone else

92
Q

trusts: purpose/relationship

A

–an alternate way to resolve some future interests issues

93
Q

cy pres in trusts

A

courts can equitably modify purpose based on donor intent when the original purpose is now impractical or impossible. If can’t modify trust fails

94
Q

Doctrine of worthier title

A

O to A for life, then to O’s heirs now just O to A for life

95
Q

heirs

A

entitled by law to inherit property if owner dies INTESTATE

96
Q

future interests: 4 kinds of possessory estates

A

*you can only have 1!* 1) fee simple absolute 2) fee tail 3) life estate 4) term of years

97
Q

RAP: when does the clock start?

A

at the creation of interest (moment of conveyance–for will, moment testator dies)

98
Q

remedies when RAP violated (3)

A

–wipe out whole thing and do FSA, or just strike the offending parrts, or could modify to try to give effect to grantor intent (eg make kid 21 instead of 25, name the widow)

99
Q

defeasible fees

A

property can be taken from recipient by triggering event

100
Q

reversion vs remainder

A

Reversion = in grantOR remaidner = in grantEE

101
Q

FS determinable: who gets what?

A

A: present possessory interest O: possibility of reverter (tho could be specified to someone else)

102
Q

potential limitations on estates

A

1) FS determinable 2) subject to condition subsequent 3) subject to executory limitation

103
Q

RAP/marketable title acts

A

it can happen

104
Q

life estate

A

–you can (live?) in property for whole life, but then it reverts back to O (or goes to someone else if designated)

105
Q

presumption against forfeiture: FSSCS vs. FSD

A

FSSCS better, bc current interest not automatically forefeited when condition violated

106
Q

fee simple absolute, ex.

A

O to A O to A and her heirs*

107
Q

F: D had life estate and lived on land in mobile home, sold land to P. Ps sue for waste. H: Life estate holder has to leave bc waste extreme (dn pay taxes or maintain property) N: unusual result – usu need acts of commission for extreme remedies, + principle against forfeiture

A

McIntyre v. Scarbrough

108
Q

Is RAP violated?

A

pikc a measuring life (must be alive and ascertaiend, ok if in utero, ok if not specifically named) relevant to whether or not conditiont akes place then figure it out

109
Q

Future interests: interpretive principles (5)

A

1) you can only sell what you have 2) rule of convenience 3) rule prohibiting creating new estates 4) presumption against future interests 5) presumption against forfeiture 6) grantor’s intent

110
Q

vested remainder subject to partial divestment aka

A

subject to open

111
Q

trusts: grantor aka

A

settlor, trustor

112
Q

savings clauses

A

drafting around the RAP eg: gives court or trustee power to reform to avoid invalidity, or say if interest violates the rule it shoudl be construed to vest only in those who may legally take it under the rule

113
Q

life estate: reverter?

A

has REVERSION in O, unless otherwise specified

114
Q

O to A “and the heirs of his body”

A

fee tail

115
Q

vested remainder

A

meets requirements as below can sell it

116
Q

VR subject to total divestment aka

A

subject to divestment

117
Q

Rule in Shelley’s cse

A

O to A for life, then to A’s heirs, where we dnk who the heirs are. Now just O to A

118
Q

life estate: duties of life tenant to remainderman (3)

A

1) fudiciary/quasi fiduciary rship 2) can’t injure or dispose of property to injury of rights of remaindermen 3) maintain property in repair, prevent decay and waste

119
Q

executory interest

A

future interest that belongs to someone other than the grantor

120
Q

right of entry

A

as above, right to reclaim

121
Q

future interests (3 in grantor, 2 in grantee)

A

GrantOR 1) reversion 2) possibility of reverter 3) riht of entry grantEE 1) remainder (vested vs contingent) 2) execturoy interests (shifting vs springing)

122
Q

life estate: duties of life tenant: can’t injure or desposte of property to injury of rights of remaindermen – exception

A

OK TO USE PROPERTY for exclusive benefit of LE (w/in confines of the rule…not reall an exception…)

123
Q

rule against new estates

A

must use an existing category

124
Q

O to A and her heirs, what does “and her heirs” mean?

A

fee simple absolute NOTE: THIS DOES NOT MEAN THAT THE HEIRS ACQUIRE ANY RIGHTS…A can still sell it to someone else etc

125
Q

Symphony Space Inc v. Pergola Properties Inc

A

H: RAP applies to option to purchase commercial property

126
Q

O to A for as long as A lives

A

life estate

127
Q

vested remainder absolute

A

“O to A for life, then to B and heirs” B has vested remainder absolute bc he will for sure get it sometime, tho might not be soon if B dies, his estate gets it

128
Q

FSD, FSSC and AP (and an ex)

A

AP starts when condition violated ex: condition violated, so in FSD automatically reverts to O, but if O dnd anything to claim, could later be AP’d

129
Q

Edwards v. Bradley

A

F: will to daughter “keeping free from encumbrances” and if does encumber then will give to kids. Daughter dn leave to granddaughter. GD argues it was only a life estate w remainder, not FSA H: LE w remainder based on intent. It can’t be what it looks like which is FS w conditions

130
Q

Uniform Statutory Rule Against Perpetuities

A

validates future interests that owuld otherwise violate RAP if interest vests at any time w/in 90 years of creation (vs life+21) only to interests thatw ould’ve been invalid under the traditional rule courts can reform deed w grantor’s intent

131
Q

F: P gives land “for purpose of hospital,” then family wants it back when used for something else: FSD or FSSC H: bc no specific limiting language assumed to be FSA (presumption in favor of FSAs)

A

Wood v. Board of County Commissioners of Fremont Cty

132
Q

total restraints on alienation generally void bc (2)

A

—> repugnant to the fee —> NW realty, bundle of sticks

133
Q

every contingent remainder creates…

A

a reversion in O

134
Q

VR subject to total divestment

A

O to A for life, then to B + heirs, but if B dn graduate from med school, then to C+heirs *C here has shifting executory interest

135
Q

O to A for 10 years

A

term of years

136
Q

term of years (3)

A

expires naturally by its own terms after certain # of years –O has revision (unless otherwise specified) –possible have conditions

137
Q

life estate: duty to keep property in repair: costs must pay

A

1) interest on mortgage (BUT PRINCIPAL PAID BY FUTURE GRANTEE) 2) taxes and insurance (but could k around)

138
Q

restraints on alienation (CL vs. modern view)

A

CL: strong presumption in favor of grantor modern view: reasonableness test

139
Q

future interests: 3 interpretive rules

A

(1) can’t grant more than you have [if your estate is encumbered by eg F.I. and you pass it to someone, theirs will be encumbered in the same way too] (2) unless grant has limiting language, presumption that you gave away the full interest (3) whatever is not granted remains with the grantor (ex. if you don’t specify what happens after, it goes back to grantor)

140
Q

F: will “to Sarah and her heirs on her father’s side 1/3 part of all my estate” H: dn limit Sarah’s ability to alienate bc can’t create a new estate so it’s a FSA

A

Johnson v. Whiton

141
Q

executory interest

A

future interest in 3rd party that cuts short the prior estate (OR happens after it ends), eg bc of happening of a conditions

142
Q

Wood v. Board of County Commissioners of Fremont Cty

A

F: P gives land “for purpose of hospital,” then family wants it back when used for something else: FSD or FSSC H: bc no specific limiting language assumed to be FSA (presumption in favor of FSAs)

143
Q

future interest (def +3)

A

right to take possession in future under specified circumstances. It might never happen, but you still have the future interest at the moment it’s created becomes “possessory” when trigger event occurs

144
Q

F: charitable trust to create public park for whites only, H: can’t apply cy pres when clear violation of testator’s intent, so trust fails (partly bc so specific) dissent: state action $ used for park

A

Evans v Abney

145
Q

you can only sell what you have: meaning

A

if it is subject to conditions and someone buys it, they are subject to identical conditions

146
Q

interpreting ambiguous wills (3)

A

1) grantor’s intent (language, circumstances) 2) presumption against future interests 3) presumption against forfeiture

147
Q

Evan v. Abney

A

F: charitable trust to create public park for whites only, H: can’t apply cy pres when clear violation of testator’s intent, so trust fails (partly bc so specific) dissent: state action $ used for park

148
Q

life estate ex

A

O to A for life O to A for as long as A lives

149
Q

Possible limitations (3)

A

1) determinable 2) subject to condition subsequent 3) subject to executory limitation

150
Q

Uniform/statutory rules – one big difference

A

unlike the RAP, some jurisdictions have laws t hat also cut off the GRANTORS possible future rights (possibilities of reverter and rights of entry) if they’re going too far into the future

151
Q

subjet to condition subsequent: exception to right of entry

A

laches–can’t wait too long

Property (13 decks)

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