Division of Ownership

Question 1

Present Interest

Answer 1

right to possess property now

Question 2

Future Interest

Answer 2

right to take possession in the future; may be conditioned on certain circumstances
For example - O to A for life(present), then to B(future).

Question 3

Will terms: Intestate

Answer 3

Person dies without a will

Question 4

Testate

Answer 4

Dies with a will

Question 5

Estate

Answer 5

“Estates” are those interests in land that give the owner a right to POSSESS the land.

Question 6

Heirs

Answer 6

People entitled by law to inherit property if owner dies without a will. (defined at death - not later)

Question 7

Devisees

Answer 7

People entitled to real property under a will.
Note: heirs and devisees could be the same people

Question 8

Testator / testatrix

Answer 8

a person leaving a valid will.

Question 9

Escheat

Answer 9

If person dies intestate without heirs, property will escheat to the state.

Question 10

Fee Simple

Answer 10

A present estate that could potentially last forever.

Question 11

Four types of Fee Simple

Answer 11

(1) Absolute;
(2) Determinable;
(3) Subject to Condition Subsequent; and
(4) Subject to Executory Limitation

Question 12

Life estate

Answer 12

Estate for a duration of one’s lifetime.

*Note: Measuring life does NOT have to be the life of owner of life estate., e.g., O to A for the life of B.

Question 13

Fee simple Absolute

Answer 13

fee simple with no future interest.
Ex. O to A (and future heirs)

Question 14

Reversion

Answer 14

A future interest retained by a GRANTOR of a life estate and other “less-than-fee-simple” estates.

Question 15

Fee simple determinable

Answer 15

˗ fee simple with a future interest that reverts automatically to the grantor on the happening of a stated event.
˗ future interest is possibility of reverter
˗ words of duration
- most harsh

Ex., as long as, during, while, until.

Question 16

Fee simple subsequent to condition subsequent

Answer 16

˗ fee simple with a future interest that grantor can choose to exercise on happening of event.
˗ future interest is right of reentry (or right of entry or power of termination).

E.g., O to A, but if used for nonresidential purposes, O shall have the right of entry.
(On condition that, but if, provided that)

Question 17

Fee simple subject to executory limitation

Answer 17

˗ fee simple with a future interest held by someone other than grantor.
˗ third party’s future interest is executory interest.
- only future interest that divests

˗ E.g., O to A, so long as used for residential purposes, then to B.
(words of duration or condition)

Question 18

Life estate - two types of FI

Answer 18

(1) Contingent remainders
(2) Vested remainders

Question 19

Contingent Remainders

Answer 19

remainders that
(1) take effect only upon an event that is not certain to occur OR
(2) go to a person (or persons) who cannot yet be ascertained.

Question 20

Vested Remainders

Answer 20

Remainders granted to people who are identifiable (ascertained) at the time of the conveyance AND with no conditions that must be met before the future interest becomes possessory (other than the end of the life estate).

• Ex., O to A for life, and then to B. This remainder is vested.
  But if condition for B to get it, then remainder is contingent.
• Ex. O to A for life, and then to B if B gets married.

Question 21

Three types of Vested Remainders

Answer 21

(1) Absolutely Vested Remainder = not subject to change.

(2) Vested Remainder Subject to Open = vested in some individuals but may be divided with others later.

(3) Vested Remainder Subject to Divestment = vested remainder that can be lost IF condition occurs. e.g., “O to A for life, then to B, but if B marries a lawyer, the property shall then revert to O.”

Question 22

Laches

Answer 22

May prevent the holder of a right of entry from waiting too long to assert her right of entry; laches prevents recovery when an unreasonable delay in asserting legal rights unfairly prejudices another. (if you sit on your rights too long, the court might not find in favor for you)

Question 23

Defeasible fees

Answer 23

where present interests can be terminated by specific events other than the death of the current owner. These events often trigger a future interest that may be held by either the grantor or a third party.

Question 24

Wood v. Board of County Commissioners of Fremont County (RULE) (warranty deed for the purpose of constructing and maintaining a county hospital.)

Answer 24

The creation of a fee simple determinable or subject to a condition subsequent requires clear and explicit language in the deed, and cannot have any ambiguities.

The court in that case determined that the language was precatory language. “Precatory language” means this language was a statement of purposes not intended to be legally binding

Question 25

Principle of a clear deed

Answer 25

• Timing is everything, i.e. time is money.
• Avoid chaos amongst the parties

Question 26

Edwards v. Bradley (RULE)(grandma created life estate for daughter)

Answer 26

You can’t make rules that stop someone from selling or giving away property they own completely, but you can make those rules for property they only have for their lifetime.

Question 27

Common Rules on ambiguities in Deeds

Answer 27

• Courts often try to figure grantor’s actual intent and look at surrounding circumstances.
• Courts may have a strong preference for construing the language to avoid messing up present / future interest.
• What does the Court weigh? Expectations of the current possessor and there’s also expectations of the one doing the giving.