Estates

Question 1

What is an “interest” in land?

Answer 1

Interest comes in:

1) Present interest - currently have the right to possess
2) Future interest - right to possess in in the future
* Even if you don’t have “possession” of the land, can still sell, give away interest

Question 2

What are the freehold estates?

Answer 2

Fee simple
Fee tail
Life estate

*Have seisin! - have possession and title to land

Question 3

What are the non-freehold estates?

Answer 3

Term of years
Periodic tenancy
Tenancy at will
Tenancy at sufferance

*Don’t have seisin

Question 4

Every interest has two parts:

Answer 4

1) Some kind of interest (present v. future)
2) Some kind of estate

i. e. - owning a house
1) present interest in 2) fee simple absolute

Question 5

What are heirs?

Answer 5

Children, parents, siblings, etc. if none, then goes to state

*Heirs only exist when you die! Before that - “heirs apparent”

Question 6

Alienable?

Answer 6

Can gift, sell, give away

Question 7

Devisable?

Answer 7

Can give away through will

Question 8

Inheritable?

Answer 8

Heirs can receive if one dies w/out will

Question 9

Fee simple absolute?

Answer 9

Created by words to “X and his heirs”

- Potentially infinite 
(no associated future interest; never goes back to grantor)
- Alienable
- Devisable
- Inheritable

*NO use restriction

Question 10

Fee tail?

Answer 10

Created by words to “X and the heirs of his body”

• Could be forever, but ends when bloodline dies then reversion to grantor
• Alienable, but will go back to bloodline when you die
• NOT Devisable
• Inheritable

*YES use restriction:
Depends what state you're in! Either:
1) Allow person to disentail and turn into FSA
2) Automatically turn FT into FSA
3) Create a package of estates (IL)

Question 11

Life estate?

Answer 11

Created by words to “X for life”

• Ends when grantee dies
• Alienable, but will end when measuring life dies
• NOT Devisable
• NOT Inheritable
• YES use restriction:
• Waste: unreasonable use by life tenant which lowers value of future interest

Question 12

What are the three types of waste?

Answer 12

Waste:

1) Affirmative: actively damage property
2) Permissive: lack of care and allow damage
3) Ameliorative: increase value of property (can’t sue for this one)

Question 13

What is the major difference b/t present estates and defeasible estates?

Answer 13

Defeasible estates can come to an early end, before max duration, by the happening/non-happening of some event

Question 14

FS determinable?

Answer 14

Can end early upon happening of a condition.

• Ends automatically
• FI (in grantor): possibility of reverter (PoV)
• Words: “so long as” / “while”

Question 15

FS subject to subsequent condition?

Answer 15

Can end early upon happening of a condition.

• Ends when grantor reenters
• FI (in grantor): right of entry/power of termination (RoE)
• Words: “if … , then O may reenter and take possession”

Question 16

FS subject to executory limitation?

Answer 16

Can end early upon a happening of a condition.

• Automatically ends and goes to 3rd party
• FI (in 3rd party): executory interest
• Words: “to A so long as … , then to B and his heirs” or “if …, then B may enter and take possession”

Question 17

Three types of defeasible estates?

Answer 17

• FS determinable
• FS subject to subsequent condition
• FS subject to executory limitation

Question 18

FI associated w/ FS determinable?

Answer 18

Possibility of reverter

Question 19

FI associated w/ FS subject to subsequent condition?

Answer 19

Right of entry

Question 20

FI associated w/ FS subject to executory limitation?

Answer 20

Executory interest

Question 21

What are future interests for grantor?

Answer 21

• Reversion
• Possibility of Reverter
• Right of entry

Question 22

What is reversion?

Answer 22

Occurs when the interest goes back to grantor

Question 23

What are future interests for 3rd party?

Answer 23

• Remainder (contingent v. vested)

- Executory interests

Question 24

How do you determine if a FI for 3rd party is an remainder or executory interest?

Answer 24

1) Is there a gap?
2) Does it cut short a prior estate (before natural end)?
3) Does it follow a FS of any kind?

*If YES to ANY then: executory interest!

Question 25

When is a FI in 3rd party a remainder?

Answer 25

Ends upon natural expiration of prior estate

Exists if:

1) no gaps
2) does not follow a FS, AND
3) prior estate not cut short

Two types:

(1) Contigent
(2) Vested

Question 26

What is CONTINGENT remainder?

Answer 26

Exists when there are (1) no ascertained takers OR (2) when there is a condition precedent (condition precedes granting language)

Question 27

What is VESTED remainder?

Answer 27

Exists when there is (1) at least one ascertained taker AND (2) no condition precedent

Three kinds:
1) Indefeasibly vested remainder:
when nothing can happen to remainder
2) Vested remainder subject to open:
when remainder is given to a class and more people can be added
3) Vested remainder subject to total divestment:
when remainder can be taken away upon happening of event, a condition subsequent

Question 28

When is a FI in 3rd party an executory interest?

Answer 28

Exists if:

1) there is gap
2) follows a FS, OR
3) prior estate is cut short