Classification of estate interest Flashcards
A fee simple absolute is
An outright ownership of the property by the grantee and grantee’s heirs
-cannot be divested
What are the types of present interest?
- Fee
- Life
- Term
the following words are needed to create a fee simple absolute
A conveyance is presumed to be fee simple absolute (e.g. from A to B)
A defeasible fee estate is:
A fee estate that can terminate upon the happening of some event
A determinable estate is created by
When the grantor uses durational language
e.g. until, while, so long as
How does a determinable estate terminate?
A determinable estate terminates automatically on the happening of a named future event
A Fee Simple Subject to a Condition Subsequent can be created when?
When the grantor uses conditional language
e.g. on condition, provided, but if
If language is ambiguous for defeasible estates, then treat as
Fee Simple Subject to a Condition Subsequent
Fee Simple Subject to Executory Interest Can be created by?
Conditional language or durational
If the condition or duration happens, then reverts to a third party
What is a Fee Tail? Legality?
Attempt to limit ownership of property to lineal descendents
-void
How to read: A to B and the heirs of his body?
A to B
-fee tails are void; gives in fee simple absolute
A life estate lasts:
estate that lasts for the duration of someone’s life
A life estate pur autre vie is:
when someone other than the grantee is the measuring life
If tied to multiple people, both must die before reversion
“A to B for the life of C.”
If B dies before C, it becomes part of B’s estate and will continue so long as C is still alive.
Defeasibility of life estate
Life estates can be made defeasible.
A term estate is:
When someone owes a property that is not determined by the length of someone’s life
Example: “A to B for 50 years.” “A to B for 1 year.”
A possibility of reverter is:
The future interest created whenever the grantor creates fee simple determinable
(durational language) –> automatically created
If grantor uses durational language, upon the happening event what happens
Automatically reverts back to grantor
Future interest in prop can go where
2
- To grantor
2. To third party
Type of future interest grantor can have
3
- Possibility of Reverter
- Right of Entry/Power of Termination
- Reversion
Type of future interest a third party can have
2
- Executory interest
2. Remainder
Transferability of possibility of reverter?
Freely transferable
A right of reentry(power of termination) is:
the future interest that can be created in the grantor when the grantor attempts to create a fee simple to a condition subsequent
How to create a right of reentry?
Has to be spelled out right of re-entry in the conveyance or it does not exist
(becomes a fee simple if there is just the condition)
EXAMPLE: “A to B provided that B uses the premises for residential purposes.” If B ever stops using the premises for residential purposes, A or A’s heirs can enter and retake the property.
Difference between right of reentry and possibility of reverter
Has to be spelled out v. automatically created
How to enforce a right of reentry?
Upon the happening of the condition, the grantor has to exercise the right of reentry to take the property back from grantee
What happens when condition occurs in a fee simple to a condition subsequent when right of reentry is not spelled out?
The property cannot be taken; however, the grantor can file breach of contract claim for damages
A reversion is
≠ right of reentry and possibility of reverter
+
Any other situation where grantor leaves a gap in ownership of property
=
a future interest created in the grantor when they have not fully conveyed the property (fills in gaps)
An executory interest is:
a future interest created in favor of a third party that
cuts short*
the preceding estate before it would naturally have terminated
Every future interest that cuts a fee short will be?
an executory interest
A remainder is:
a future interest that follows
naturally*
the preceding estate
A Contingent Remainder is
any remainder that is not vested
An interest that could be taken away
EXAMPLE: “A to B for life, then to the oldest child of C then living.” Would be a contingent remainder. We don’t know who the oldest child is going to be until B dies. There is a condition precedent to that person taking—they must be alive when B dies.
