deck_8023115 Flashcards
Present Possessory Estates
1) Freehold Estates (FSA, DEs, FT)2) Life Estates3) Term Estates
Freehold Estates
1) Fee Simple Absolute (best estate, all possible right)2) Defeasible estates (may terminate, includes: FSD, FSSCS, FSSEE)3) Fee Tails (CL rule to limit to grantee’s children only, now disfavored)
Language to create a Fee Simple Absolute
“to A and his heirs” (common law);“to A” (modern law)
Defeasible Estates: def and types (3)
An estate that may terminate upon some happening or event before its maximum duration has run. Includes:(1) Fee Simple Determinable:Terminates automatically on happening of a named future event, and estate returns to grantor(2) Fee Simple Subject to a Condition Subsequent:terminates on occurrence of a condition, power of termination must be expressly reserved to grantor(3) Fee Simple Subject to Executory Interest: on happening of event that terminates estate, property passes to someone other than grantor
Language to create a Fee Simple Determinable
created by durational language (“to A for so long as liquor is not served on the premises”)
Language to create a Fee Simple Subject to a Condition Subsequent
Created by: conditional language as to occurrence of a condition that will terminate estate
Ambiguous language in a FSSCS
If power of termination is not expressly reserved to the grantor, courts interpret it as an attempt to create FSSCS (but it fails, and is just a fee simple, i think)
language creating Fee Simple Subject to Executory Interest
Created by: either conditional or durational language, that places the remainder with a third party (not grantor)
Fee Tail: under CL and modern
A type of defeasible estate, under Common law, which descended to grantee’s children only (“issue of his body” or something)Modern law: fee tails are disfavored and are treated as a fee simple absolute
language creating a Life Estate
limits duration to someone’s life, e.g. “to B for life, solong as B farms land.” Can be made defeasible, as in the example above.
Term Estate
a non freehold estate, limited in duration (basically a landlord-tenant relationship)
Future Interests (5)
Non possessory interest1) Possibility of Reverter2) Power of Termination3) Reversionary Interest4) Remainder5) Executory Interests
Possibility of Reverter
future interest in grantor that follows a determinable estate, created automatically along with a FSD, no speciallanguage needed.Upon happening of the FSD’s event/condition: land automatically reverts back to grantor.
Transferability of FSD
Common law: could not be devised or transferred inter vivos (could pass through intestacy or will)Modern law: freely transferable, devisable, and descendible
“Life estate pur autre vie”
type of Life Estate, where duration of estate is measured by life of someone other than grantee(i.e., “to B for the life of C”)
Right of Reentry
= same thing as Power of Termination, non automatic future interest which must be spelled out
Power of Termination
= same as Right of Reentry, a future interest in grantor when grantor attempts to create a FSSCS or a defeasible life estate. This power is not automatic, and must be spelled out in the conveyance. Upon happening of the event/condition, land does not automatically revert; grantor must do something to retake property.
Remainder, types
a future interest created in a third person that is intended to take after natural terminationof preceding estate. Could be Contingent or Vested.
Transferability of Power of Termination/RoR
Common law: could descend through intestacy or will but could not be devised or transferredinter vivosModern law: freely descendible and devisable but many jurisdiction still limit inter vivos transfers
Language to create a Remainder
mean to begin after natural termination of preceding estate, i.e., “A to B for life, then to C,” creates a remainder for C.
Reversionary Interest, language to create
A future interest retained by grantor when he transfers less than a fee to a third person(i.e., “A to B for 10 years,” creates a reversion back to A after 10 years.)
Transferability of Reversionary interest
Common law: could descend through intestacy or will, but could not be devised or transferredinter vivosModern law: freely transferable, devisable, and descendible
Contingent remainder
Any remainder that isn’t vested
Vested Remainder
a remainder is vested at the point that it is:(a) Created in an ascertainable person; and(b) Not subject to any condition precedent other than termination of preceding estate