Defeasible Fees and Concurrent Estates

Question 1

Fee Simple Determinable

Answer 1

A posessory interest limited by specific durational language.

Upon happening of stated event or condition ownership is terminated and auto transferred to Grantor or 3rd party Grantee.

• Common durational language:
  
  • “So long as”
  • “While”
  • “Until”
• Future interest that follows:
  
  • Grantor: Possibility of Reverter; auto vest in Grantor
  • 3rd party Grantee: Executory interest
• Fully transferable, devisable and descendible.

Question 2

Fee Simple Subject to Condition Subsequent

Answer 2

A posessory interest limited by specific conditional language.

Grantor retains power to terminate Grantee’s ownership on happening of stated event or condition take it back or give to a 3rd party Grantee.

• Common conditional language:
  
  • “Provided that”
  • “But if”
  • “on condition that”
• Future interest that follows:
  
  • Grantor: Right of Entry; Grantor must act to retake
  • 3rd party Grantee: Fee Simple Subject to Executory interest.
• Fully transferable, devisable, decendiable

Question 3

Fee Simple Subject to Executory Interest

Answer 3

A Posessory interest that auto vest in a 3rd party grantee upon the happening of a given event or condition.

• Fully transferable, devisable, decendiable
• Future Interest: Shifiting Executory Interest because it divests the Grantee.

Question 4

Grantor’s Future Interests

Answer 4

1. Possibility of Reverter follows a Fee Simple Determinable
2. Right of Re-entry follows a Fee Simple Subject to Condition Subsquent
3. Reversion follows a life estate

Question 5

Grantee’s Future Interest

Answer 5

Future interests in grantees or 3rd persons

1. Vested Remainder - three types
   
   • Indefeasibly vested
   • Vested Subject to total divestment
   • Vested subject to open
2. Contingent remainder
3. Executory interest

Question 6

Defeasible Fees - Remainders

Answer 6

Question 7

Defeasible Fees - Vested Remainder

Answer 7

Question 8

Defeasible Fees - Contingent Remainders

Answer 8

Question 9

Life Estate

Answer 9

• Present estate that is limited by someone’s life.
• Transferable and conveayble during measuring life
• Not deviseable
• Interest that follows a life estate
  
  • Reversion in Grantors
  • Remainder in 3rd party

Question 10

Life Estate

Answer 10

Question 11

Concurrent Estates - Basics

Answer 11

• Simultaneous ownership or posession of real property by two or more persons.
• All owners have right to use/possess the whole property.
• Can alter rights by contract.
• Three Types
  
  • Tenancy in Common - Default
  • Joint Tenancy
  • Tenancy by entirety - Married Folks

Question 12

Concurrent Estates - Tenancy in Common

Answer 12

• If conveyance to multiple people unclear then “TiC” is presumed
• Concurrent owners have separate but undivided interest in the property.
• No Right of Survivorship - co-tenants can transfer property inter-vivos or at death. DOES NOT auto-transfer to other co-tenants.

Question 13

Concurrent Estates - Joint Tenancy

Answer 13

Question 14

Concurrent Estates - Tenancy By Entirety

Answer 14

Question 15

Restraint on Alienation

Answer 15

Occurs when grantor or testator wants to convey property while at the same time retain control over its alienation.

Question 16

After-Acquired Title Doctrine

A.k.A

Estopple by Deed

Answer 16

1. If Grantor conveys property that she does not own; and later acquires title to that property; it will automatically pass to Grantee.

Question 17

Creating a Joint Tenancy in MI

Answer 17

There must be the unities of possession and interest. Do not need Time and Title as in MBE.

Question 18

Doctrine of Waste

Answer 18

1. The Doctrine of Waste requires the tenant in possession to reasonably maintain the property.
2. It permits any any remainderman or grantor with reversionary interest to enter land to inspect for waste, sue for injunction to prevent waste or to sue for damages from waste.
3. Three types of waste:
   
   • (a) Affrimate waste
   • (b) Permissive Waste
   • (c) Ameliorative Waste

Question 19

Affirmative Waste

Answer 19

1. What: Affirmative or Voluntary waste is the result of overt conduct that causes a decrease in value of the property.
2. Tenant’s Duty: Not to overtly destroy property.
3. Expception: Profit K’s can continue if allowed by Grantor or necessary to maintain property.

Question 20

Permissive Waste

Answer 20

1. What: (a) Tenant fails to make resonable repairs to maintain property,
2. Tenant’s Duties:
   
   • (a) Make resonable repairs if property does or can generate income but not required to spend more than what property can generate.
   • (b) Pay any property taxes and mortgage interest on property.