Estate System Flashcards
What are the types of present possessory estates?
- Freehold estates
- Life Estates
- Non-freehold estates
What are the types of Freehold Estates?
- Fee Simple Absolute
- Defeasible Estates
- Fee tails
What is a free simple absolute?
A fee simple absolute is the best type of estate, in which a holder has all possible rights that a person may have in a parcel of land
How is a fee simple estate created?
“To A and their heirs” or “To A”
What is a defeasible Estate?
A defeasible estate is an estate that may terminate upon some happening or event before its maximum duration has run
What are the types of defeasible estates?
- Fee simple determinable
- Fee simple subject to condition subsequent
- Fee simple subject to executory interest
What is a fee simple determinable estate?
An estate that terminates automatically on the happening of a named future event and automatically reverts back to the grantor
What happens to a fee simple determinable upon the occurrence of a named future event?
The estate returns to the grantor
How is a fee simple determinable created?
A FSD is created by durational language “for so long as” “during” “until” or “while”
What is a fee simple subject to condition subsequent?
An estate that MAY terminate on the happening of a named future event and grantor MAY choose to re-enter
How is a fee simple subject to condition subsequent created?
FSSCS is created through conditional language as to the occurrence of a condition that will terminate the estate, with the power of termination expressly reserved to the grantor.
May include language like “provided however,” “however if” “on condition that” “in the event that”
What is the difference between a fee simple determinable and a fee simple subject to condition subsequent?
A FSD automatically terminates upon the occurrence of a named condition, a FSSCS may terminate upon the will of the grantor, who retains right of re-entry, but doesn’t necessarily HAVE to terminate
What is fee simple subject to executory interest?
An estate where termination occurs on the happening of an event that terminates the estate, with property passing to a third party other than the grantor
How is a fee simple subject to executor interest created?
My be created using either conditional or duration language, and will specify the third party executory interest
What is a fee tail?
Common law: an estate that descended to a grantee’s children only
Modern law: fee tails are disfavored and instead treated as fee simple absolutes
What is a life estate
a life estate lasts for the duration of the grantee’s life, and can be made defeasible
What is a life estate pur autre vie
A life estate whose duration is measured by the life of someone other than the grantee
What is a non-freehold estate?
A term estate is a non-freehold estate that is limited in duration
What are the types of future interests?
- possibility of reverter
- power of termination / right of reentry
- reversionary interest
- remainder
- executory interest
What is the possibility of reverter
Possibility of reverter is a future interest in the grantor that follows a determinable estate
How is a possibility of reverter created?
Creation of a fee simple determinable automatically creates a possibility of reverter - no special language
Are possibilities of reverter transferable?
Under majority modern law, rights of reverter are freely transferable, devisable and descendible
What is power of termination?
Power of termination or right of reentry is a future interest in the grantor when the grantor attempts to create a fee simple subject to condition subsequent or a defeasible life estate
How is a right of reentry and power of termination created?
Grantor must specify in conveyance that upon the happening of an event the property won’t automatically revert, but instead grantor may exercise right of reentry and could take affirmative steps to retake the property
Are powers of termination / rights of reentry transferable?
Under modern majority the power of termination is descendible and devisable however, the power of termination cannot be transfered inter vivos
WHat is a reversionary Interest
A reversion is a future interest retained by the grantor when the grantor transfers less than a fee interest to a third person (e.g. what happens after a life estate)
