Estate Classification Flashcards
Fee simple absolute
An interest of indefinite duration
Divisible, descendible and alienable
Fee simple determinable
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)
Fee simple subject to a condition subsequent
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)
Life estate
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.
Fee simple subject to an executory limitation
Divisible, descendible and alienable
FI: shifting executory interest to 3d party
Possibility of reverter
Right of entry held by grantor
Depends on even affecting the land
NC: must vest w/in 60 years after its creation or expires
Shifting executory interest
follows defeasible fee of some sort
Springing executory interest
Occurrence of condition cuts shore grantor’s interest in property in favor of grantee
Contingent remainder
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.
Vested remainder
Ascertainable person and not subject to condition precedent
Indefeasibly vested remainder
3d person certain to acquire future interest w/out condition
Vested remainder subject to complete defeasance/total divestment
3rd party’s future interest could get cut short by satisfaction of condition subsequent.
Vested remainder subject to open
Remainder vested in group with at least 1 qualified to take, but may add more class members.
Voluntary/affirmative waste
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)
Permissive waste
Life T must pay all ordinary taxes and mortgage interest payments and protect land from disrepari by conducting reasonable maintenance.
Ameliorative waste
Acts that may enhance property value not allowed unless future interest holders know and give consent.
RAP
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.
Damages for waste
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.
Rule in Shelly’s Case and Doctrine of Worthier Title
Traditional rules to prevent or limit creation of contingent remainders in heirs of the grantee/grantor
Abolished in NC
Uniform Statutory Rule Against Perpetuities
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.
