Estate Classification

Question 1

Fee simple absolute

Answer 1

An interest of indefinite duration

Divisible, descendible and alienable

Question 2

Fee simple determinable

Answer 2

Limited by specific durational language:
So long as, while, during

Divisible, descendible and alienable

FI: Always has a possibility of reverter (goes back to grantor or third party)

Question 3

Fee simple subject to a condition subsequent

Answer 3

Upon condition that, provided that, but if, if it happens that.

Divisible, descendible and alienable

FI: Always has an accompanying right of entry (can choose to exercise)

Question 4

Life estate

Answer 4

Life tenant limited by doctrine of waste.

Future interest: reversion in grantor or reminder in 3d party. If life estate in 2 persons, contingent remainder in fee simple upon death of first.

Question 5

Fee simple subject to an executory limitation

Answer 5

Divisible, descendible and alienable

FI: shifting executory interest to 3d party

Question 6

Possibility of reverter

Answer 6

Right of entry held by grantor

Depends on even affecting the land

NC: must vest w/in 60 years after its creation or expires

Question 7

Shifting executory interest

Answer 7

follows defeasible fee of some sort

Question 8

Springing executory interest

Answer 8

Occurrence of condition cuts shore grantor’s interest in property in favor of grantee

Question 9

Contingent remainder

Answer 9

Unascertained person or subject to condition precedent, or both.

If condition precedent, conditional language appears before language creating remainder. If satisfied, becomes an indefeasibly vested remainder.

Question 10

Vested remainder

Answer 10

Ascertainable person and not subject to condition precedent

Question 11

Indefeasibly vested remainder

Answer 11

3d person certain to acquire future interest w/out condition

Question 12

Vested remainder subject to complete defeasance/total divestment

Answer 12

3rd party’s future interest could get cut short by satisfaction of condition subsequent.

Question 13

Vested remainder subject to open

Answer 13

Remainder vested in group with at least 1 qualified to take, but may add more class members.

Question 14

Voluntary/affirmative waste

Answer 14

Overt conduct causing a decrease in value or consumption/exploitation of natural resources, except PURGE:
Prior use (if exploitation previously occurred, but limited to open mines doctrine), reasonable repairs, grant, or exploitation (land only suitable for this purpose)

Question 15

Permissive waste

Answer 15

Life T must pay all ordinary taxes and mortgage interest payments and protect land from disrepari by conducting reasonable maintenance.

Question 16

Ameliorative waste

Answer 16

Acts that may enhance property value not allowed unless future interest holders know and give consent.

Question 17

RAP

Answer 17

Voids future interest if there is any possibility that the given interest may vest > 21 years after death of measuring life.

Analysis: (1) last person mentioned by proper name; (2) next subsequent party not mentioned by proper name takes. (3) the rest is struck.

Wait and see/second look: Maj. jx. determine RAP at the end of the measuring life.

Uniform Statutory Rap: provides for 90 years vesting period.

Question 18

Damages for waste

Answer 18

Damages, eviction, or forfeiture of estate.

Holding contingent remainder: injunction

LT whose failure to pay taxes results in property being sold is liable to the holder of a remainder or reversionary interest for any damages suffered. If remainderman pays taxes he can recover from LT.

If property held in LT is purchased at a foreclosure sale, future interest is not eliminated, so long as the holder of the future interest pays her share of the purchase price w/in a reasonable time.

Question 19

Rule in Shelly’s Case and Doctrine of Worthier Title

Answer 19

Traditional rules to prevent or limit creation of contingent remainders in heirs of the grantee/grantor

Abolished in NC

Question 20

Uniform Statutory Rule Against Perpetuities

Answer 20

USRAP
Adopted in NC
An interest fails the rule if it: fails the traditional rule, and does not vest or terminate within 90 years of creation.

This gives the interest a second chance if it fails the traditional rule.

Doesn’t apply to:
Charity to charity transfers; charitable trusts; and certain other interests that have their own time restrictions:

Reversionary interests (60 years)
Executory interest (60 years)
Options in gross and rights of first refusal (30 years)
Leases commening in future (30 years)
Nonvested easements (30 years)

Trusts created/administered in NC are exempt from USRAP, except noncharitable trust, which may to suspend the power of alienation of trust proper for a period of more than a life or lives in being +21 years.