Estates

Question 1

Present Possessory Estate

Answer 1

An interest that gives the holder the right to present possession.

Question 2

Fee Simple Absolute

Answer 2

Is the largest estate recognized by law. It can be sold, divided, devised, or inherited and has an indefinite or potentially infinite duration.

Presumed in the absence of express contrary intent

Question 3

Defeasible Fees

Answer 3

Fee simple estates that can be terminated upon the happening of a stated event

Question 4

Fee Simple Determinable (and Possibility of Reverter)

Answer 4

Terminates upon the happening of a stated even and as “for so long as,” “while,” “during,” or “until”

Automatically reverts to the grantor

Question 5

Reverter

Answer 5

Whenever a grantor conveys a fee simple determinable, he automatically retains a possibility of reverter, WHICH IS A REVERSIONARY FUTURE INTEREST.

Question 6

Fee Simple Subject to Condition Subsequent (and right of entry)

Answer 6

The grantor reserves the right to terminate the estate upon the happening of a stated event; i.e., the estate does not automatically terminate – the grantor must take some action

Conditional words: “upon condition that,” “provided that,” “but if,” and “if it happens that”

Question 7

Right of Entry

Answer 7

The right to terminate held by the grantor. Must be expressly reserved – does NOT arise automatically (like reverter)

Question 8

Fee Simple Subject to an Executory Interest

Answer 8

If a fee simple terminates and then passes to a third-party rather than reverting to the grantor, the third party has an executory interest

Example: “To A and his heirs for so long as liquor is not sold on the premises; in that event to B.”

Question 9

Doctrine of Waste

Answer 9

A life tenant is entitled to any ordinary uses and profits of the land but cannot do anything that injures the interests of a remainderman or revisioner.