Ch. 5 "Estates and "future" [may become possessory] interests" Flashcards

Question

Four present possessory estates-defined by duration

Answer 1

1) Fee simple 2) Fee tail 3) Life estate 4) Defeasible fees

Answer 2

May last forever

Answer 3

Last until a line of descendants runs out

Answer 4

Lasts for a person's life

Answer 5

Continue forever or may end upon the occurrence of some future event - 3 types and each entitles the holder to possession now 1) Fee simple determinable 2) Fee simple subject to condition subsequent 3) Fee simple subject to executory limitation

Answer 6

Had the greatest potential duration of an interest in the common law system; can continue so long as each successive owner dies with heirs(potentially infinite) -Owner of estate has ALL the rights "bundle" NOTE: No future interest that accompanies fee simple absolute Ex: The grant by "O to B and his heirs" can be read more simply "O conveys to B in fee simple absolute"

Answer 7

1) Duration is by the lives of lineal descendants of a particular person 2) Most states have rejected this, and for the few where it still exist, it is essentially a succession of life estate 3) Created by a conveyance - "to A and the heirs of his body"

Answer 8

1) Has the potential duration of one or more human lives; measures by the grantee's life 2)Holder of the life estate is called the life tenant EX: "O conveys to A for life" -A, grantee gets an estate for so long as A lives -On A's death, the lnd reverts back to O, grantor 3)Life estate pur autre vie(for another life): A life estate can be measured by life of a person person other than the life tenant - who can convey their interest to someone else. Ex: "O conceys to B for Life of C" -B's estate is measured by the duration of C's life

Answer 9

A default doctrine that applies in the absence of clear intent regarding the division of rights/responsibilities between the life tenant and remainder ( or reversion) holder 1) AN action brought by the owners of the remainder, against the life tenant, seeking damages and/or injunction b/c they are acting/omitting to act in a manner that properly preserves the property for the remainder holders Rationale: A should NOT be able to use the property in a manner that reasonably interferes with the expectation of B. Waste avoids use that fails to maximize the value. 1) The grantors intent(use land in a reasonable manner, and improve it) 2) Where 2 or more persons own interest in a land, fairness requires that one shall not damages on the other Remedies: 1) INJUNCTION: Owner of the remainder may prevent the threatened waste or recover damages 2) DAMAGES: Can be assessed now, pending the determination of actual damages or ascertainment of actual owner.

Answer 10

1) Affirmative (Voluntary) Waste 2) Amelio waste 3) Permissive waste

Answer 11

An affirmative act that significantly reduces the value of the property (i.e., demolishing a valuable house) 1.Any voluntary material change in the improvements, or removing improvements, fixtures, timber, or minerals (unless normal use was to deplete those)

Answer 12

An affirmative act that leads to a substantial change and increases its value (i.e., building a swimming pool) 1. Exception: changed circumstances that made the improvements reasonably necessary 2. Only actionable if: (1) there are changed circumstances; and (2) activity increases the value.

Answer 13

Results from a failure to take reasonable care to protect the estate (i.e., failure to make minor repairs or pay property taxes) 1. Allowing the property to deteriorate without undertaking the maintenance/making payments that should be allocated to the life tenant 2. Life tenant is liable for ordinary, regular expenses that are associated 3. Repairs: only ordinary repairs (not improvements/replacements) 4. Taxes: all taxes, but only for rents received or the fair rental value 5. Interest: interest on the mortgage, but a life tenant who places mortgage solely on his/her life estate is liable for both principal and interest.

Answer 14

Automatically ends when a certain event or condition occur, giving the rights of possession to the transferor 1) automatically forfeiture to grantor 2) Duration can be infinite so long as the event/condition doesnt occur 3) Alienable, devisable, and descendible- subject to the given event Grantors intent controls, but potential identification words are: for long as, while, during until -Requires clear durational language. Words of desire, Hope Accompanying Estate that may become possessory estate (future interest) 1)Grantor retains a possibility of reverter

Answer 15

Purpose: Distinction between a defeasible estate: Fee simple determinable v. Fee simple subject to condition subsequent Facts: Prior owner executed a deed transfer land for a school for only school purposes or revert back to the grantor. Prior owner died, non of her heirs reentered nor have title to transfer Rule: Deed language granting land for an ambigpous purpose and otherwise reverting the land to the grantor creates a fee simple determinable followed by a possibility revertor Holding: the deed terminated when the school did not use it for school purposes Takeaway: Deed language matters(the intent)

Answer 16

Purpose: Fee simple determinable with within a time Facts: Rigney conveyed a parcel of land to Tocamoa for the purpose to only use it for conducting water to the city. Stopped using it for water and built a park. Issue: After a breach of a contract subsequent, does the grantors right to declare forfeiture expire if he fails to exercise it within a reasonable time? Holding: Grantor must declare forfeiture within a reasonable time Policy: Prevents reversions many decades later

Answer 17

Purpose: Is a deed marketable when the language is ambiguous Facts: Title search revealed that the language of the deed given to D by her predecessor conveyed little to steinlauf and assigns forever but did not include heirs Issue: Does a deed for real proerty convey marketable title if it does not express state that title runs tot eh grantee and the grantee's hais Holding: NO. A deed is not markable when you have to prove the intent of the prior holders intent Takeaway: Cannot convey land when deed says so otherwise

Answer 18

Facts: A drafted will of a fee simple to the P Rule: When the terms of a will are ambiguous, it should have passed a fee simple absolute Holding. YES. There was insufficient evidence to indicate an intent to grant an estate less then a fee simple absolute

Answer 19

Purpose: Waste Facts: Prior owner left his real property to his wife, as a life estate with the property going to his children, after her death. Cathrine wanted to tear down the barn b/c it was old. But daughter disagreed Issue: May the holder of a remainder interest in a parcel of property prevent the life tenant of that property from destroying a structure? Rule: Can not prevent it if destroying the property will not decrease the value Holding. NO. Destroying the property would actually improve the land.

Answer 20

Created in a transferee that may be terminated at the election of the transferor when a certain event/condition occurs 1) Forfeiture is NOT automatic - grantee retains title untul grantor takes action 2) Duratio can be infinite so long as the event/condiiton does NOT occur 3) Alienable, deviseable and descendible Grantor's intent control, but potential identification words are: provided that, but if, on a condition that -Requires clear durational language that must carve out a right of re-entry (words of desire, hope are insufficent) Accompanying Estate that may become possessory (FUTURE INTEREST) 1) Right of re-entry: Always follows a fee simple subject to condition subsequent. This future possessory interest can be retained by the transferor (heirs) and cant be created in a transferee.

Answer 21

Created in a transferee that is followed by FUTURE interest in another transferee [held by a third party] 1) AUTOMATIC forfeiture- estate automatically transfers to a third person, not the grantor 2) Duration can be infinite so long as the event/conditon does occur 3) Alienable, devisable and descendible Grantor intent controls, but potential idenification words are: for so long as, while during, until, provided that, but if, on condition that Accompanying estate that may become a possessory estate (future interest) 1)Executory interest: the third party holds the shifting executory interest

Answer 22

Any attempt to restrict free alienation of the property "inconsistent with the incidents and nature of the estate devised and contrary to public policy" -Applies only when a grantor wants to convey or dispose of property while at the same time retaining control over its alienation '

Answer 23

Prevents the transferee from transferring interest "O conveys to B, and any conveyance by B is void"

Answer 24

1)Leads to a forfeiture of title if the transferee attempts to transfer interest 2)Forfeited to the grantor or third party "O conveys to B, but B ever tries to sell the estate, then to D"

Answer 25

1) A restraint that stipulates that the transferee promises not to transfer interest Ex: "O conveys to B, B promises that she will not sell the estate"

Answer 26

Default estate that may become possessory estate for grants of an estate smaller than a fee simple 1) Lesser quantum(lesser estate) determined by the present possessory estate hierarchy (fee simple->fee tail->life estate->leasehold) EX: O have a fee simple and only transfer a life estate to the transferee. O would have a reversion by the operation of law at the death of the transferee An estate retained by the grantor when he coneys less than what he owns, and when the estate runs out, he gets the rest of it back Any time the possessory and future interests granted to others do not equal the size of the estate , the grantor retains a reversion Possibility of reverter- fee simple determinable right of entry-fee simple subject to subsequent condition

Answer 27

Three types: 1) Vested remainder(3 kind) a) Indefeasibly b) Subject to divestment c) Subject to open 2) Contingent remainder 3) Executory interest

Answer 28

An estate that may become possessory in a third person that arises immediately upon the termination of the preceding estate. (Two elements must be met) 1) Possessory upon termination of the prior possessory estate 2) Cannot divest a prior interest b. Expressly created in the same conveyance in which the preceding estate is created i. Different than reversions [which are implied]—a reversion doesn’t have to be expressly stated, they arise via operation of law. ii. Remainders are not implied and do not arise via operation of law. c. A grantee’s estate that may become possessory estate that waits for a possessory estate to “end naturally” i. remainder or executory interest ->how does a future interest become possessory? Does it wait politely or cut short another interest?

Answer 29

After determining the estate that may become possessory 1) Indefeasibly vested remainder 2) Subject to divestment 3) Subject to open

Answer 30

becomes possessory immediately upon termination of the prior estate

Answer 31

: according to the words creating it, followed by words stating a condition subsequent

Answer 32

class of takers, at least one who is capable of taking possession (by virtue or by being alive) 1. Open vs. Closed Class: a class remains open to allow for future class members and closes when additional members are impossible. 2. Rule of convenience: class closes whenever any class member can call for distribution of their share; doesn’t apply if it conflicts with the grantors expressed intent

Answer 33

1. Given to an ascertained person and not subject to a condition precedent 2. Ascertained person: alive and when they have a name 3. Condition precedent: a condition that must occur in order for the holder of the interest to be entitled to possess the land; something that must occur before possession 4. Does NOT mean that the remainder is guaranteed to become possessory 5. Also used when an interest is possessory (i.e., it is “vested in possession”

Answer 34

ii. Contingent 1. A remainder that is either: (1) given to an unascertainable person, or (2) subject to a condition precedent, which must be satisfied before the interest becomes possessory. 2. If not vested, contingent 3. Includes remainders in unborn/unascertained takers. Contingent on becoming born or ascertained 4. NOTE: once grantee satisfies the contingency, it automatically becomes an indefeasibly vested remainder 5. Contingent remainders are not certain to become possessory Ex: To a for life, then to B and his heirs when B gets married" - A has a life estate - B has a contingent remainder (b/c marriage is condition precedent) - Grantor has a reversion in Case B is not married when A dies

Answer 35

Purpose: Rules against perpetuities Facts: Audley left the interest of 1000 euros to his wife during her lifetime will. After wife's death goes to niece mary hall and her issue . If she did not have an issue then divided mon g"daughters then living" Issue: Under rules against perpretuties, is a bequest that does not vest after a life or lives in being the time of the testor's death plus21 years valid? Rule: A bequest that does not vest within a life or lives in being at the time of the testors death plus 21 years is INVALID Holding. YES.

Answer 36

An estate that may become possessory estate in a transferee that must divest another estate or interest to become possessory -Fee simple subject to executory interest=upon the occurrence of the event or condition, estate automatically transfers to a third person

Answer 37

Main difference is how each future interest operates; how each becomes possessory 1) REMAINDERS "Wait politely" - Wait politely for natural termination of preceding estate in a transferee 2) Executory interest -divest (cut short) another interest a) Divest the preceding estate in another transferee or in the transferor b) Shifting executory interest: Cutting short preceding estate in another transferee - most executory interest are shifting executory interests c) Springing executory interests: cutting short in the transferor

Answer 38

VEsted remainder that becomes possessory immediately upon termination of the prior estate (certain to become a possessory estate) ex: " O conveys Greenacre to "A for life, then to B' Here B holds the indefeasibly vested remainder

Answer 39

Vested remainder subject to some condition subsequent, such that the remaindermen could be divested after taking posession Ex: "to A for life, remainder to B; but if B weds, then C"

Answer 40

One who is capable of taking posession | ex: O conveys Greenacre to "b for life, then to D's children" and time time D has 2 living children, E and F

Answer 41

If an executory interest follows an interest in the transferor Ex: O conceys Greenacre "to B for life, then one year after B's death to D and his heirs" - B: life estate - O regains a fee simple after B's death. One year later, then D's estate that may become possessory actually becomes posessory, it will divest O by butting O's estate short. Accordingly, B has a sringing exectuory interest

Answer 42

"O conveys Greenacre to "B and her heirs until humans land on mars, then to D and his heirs" - B: fee simple subject to executory limitation - D; Shifting Executory limitation. D's possession immediately follows the end of B's estate and D can do nothing to cut B's estate short, so D does not divest B

Answer 43

When a grantor places a condition on an estate that will cause it to terminate when the condition occurs, the estate is referred to as being “defeasible,” and is subject to qualifications that are not present in an absolute estate.

Answer 44

Applies to: 1) Contingent remainders 2) Executory interests 3) Vested remainders subject to open Does NOT apply: 1) Fee simple absolute; fee simple defeasible; life estate 2) Reversion; possibility of reverter; right of reentry 3) Indefeasibly vested remainder; Vested remainder subject to divestment