Defeasible fees Flashcards
Defeasible Fee:
interest that can be terminated by the occurrence or non-occurrence of an event or condition.
Fee Simple Determinable:
interest in property that is terminated automatically upon the occurrence or non-occurrence of an event or condition.
A to Company “as long as they use it for operating quarters until the next presidential election.”
Company has fee simple determinable, A has possibility of reverter
POR
POT/ROR
REVERSION
Possibility of reverter:
Interest that will revert back to the grantor upon occurrence or non-occurrence of an event or condition.
Power of termination / Right of reentry:
grantor reserves the right of reentry, can elect to take it, MUST BE EXPRESSED
Reversion:
Grantor’s future interest
Fee Simple Subject to a Condition Subsequent:
interest that can be terminated at the will of a future interest holder upon the occurrence or non-occurrence of an event or condition.
Contingent remainder (RP):
remainder unknown/unborn taker and has a prerequisite
“to A for life then to A’s first child” - A has no children
“To A for life then if graduated from law school then to B” → A has life estate, B has CR
“To A for life and on A’s death to her children in equal shares” → Contingent remainder in unborn children of A. O has reversion in fee simple.
If A has child B → life estate in A. vested remainder subject to open in B. B’s remainder is vested.
If A has children B and C → B and C has vested remainder as tenants in common subject to open.
A dies. If B dies later → B’s successors will be entitled to the share with C.
(Indefeasibly) Vested remainder
if the beneficiaries are ascertainable and their taking in possession is not subject to a condition precedent.
To A for life then to B. (B not subject to conditions)
Vested remainder subject to open (RP)
Class of persons that is certain to take but subject to increase in size
To a for life then to A’s children. (A has C&D, subject to other uncertain member can join in)
If A has child B → life estate in A. vested remainder subject to open in B. B’s remainder is vested.
If A has children B and C → B and C has vested remainder as tenants in common subject to open.
A dies. If B dies later → B’s successors will be entitled to the share with C.
Vested remainder subject to total divestment
if possession is subject to being defeated by the happening of a condition subsequent (something happening after gaining possession of the estate).
To A for life then to B but if B leaves the legal profession, then to C → C is shifting executory interest
To A for life, then to B for life. → A has life estate. B has vested remainder in life estate subject to divestment. O has reversion in fee simple. B’s remainder life estate will be defeated if he dies in A’s lifetime.
Springing Executory interest (RP)
Shifting Executory Interest (RP)
An executory interest can be springing (meaning the previous interest was held by the grantor) or shifting (meaning the previous interest was held by someone other then the grantor).
