Estates Flashcards
Fee Simple Absolute
A fee simple absolute constitutes full ownership of land. It has no words of limitation and is the largest estate recognized by law. A fee simple absolute is freely transferable.
Fee Simple Determinable
A fee simple determinable automatically terminates upon the happening of a particular event. When a fee simple determinable ends, title reverts back to the grantor and the grantor has an immediate right to possession without taking any steps to terminate the interest. A fee simple determinable may be created by such language as “so long as” “until” “while” or any other word or phrase suggesting a duration of time.
Fee Simple Determinable - Possibility of Reverter
A possibility of reverts is the interest left in the grantor when the grantor transfer a fee simple.
Fee Simple Subject to Condition Subsequent (Right of Re-Entry)
A fee simple subject to a condition subsequent is created when the grantor conveys a fee simple in the grantee but retains the power to terminate the estate upon the happening of an event. The language of the deed must expressly provide for the right of re-entry. Thus, the future interest held by the grantor is called a right of re-entry
1) The hallmark of this estate is that it does not automatically end when the condition occurs. Instead, the grantor must take some action to terminate the estate. If the grantor fails to act, the estate continues.
Contingent Remainder and the Destructibility of Contingent Remainders
A remainder is contingent if it is subject to a condition that is uncertain to occur. At common law, a contingent remainder was destroyed if it failed to vest when the proceeding estate ended.
Restraints on Alienation
A restraint on alienation restricts a grantee’s powers to covey her interest in the property. Public policy favors the free alienability of land. Thus, any total or absolute restraint on alienation of a fee simple is void. The rationale is to prevent the land from being permanently unattainable or sold.
1) However, a partial restraint is valid if it is reasonable in scope and duration. The most common example is a restraint on the alienation of a life estate because of its limited duration
2) There are several different types of restraints. A forfeiture restraints is a provision in a deed that would terminate a fee simple upon transfer. Such a restraint is invalid if its makes it impossible for any grantee to transfer her interest for any period of time. In such case, the grantee may ignore the restraint and freely transfer the property.
Life Estate
The duration of life estate is measure by the life of the grantee
Waste
The doctrine of waste prevent the present estate holder from acting in a manner that would unreasonably injure the land. Waste is considered any act that impairs or reduces the value of the property. The purpose of the rule is that the current tenant should pass on possession of the land to the future interest holder in approximately the same condition as it was received.
1) Two principal types of waste are generally recognized; affirmative waste and permissive waste.
Waste - Affirmative Waste
Affirmative waste occurs when the voluntary acts of the tenant significant reduce the value of the property e.g. intentionally destroying the premises
Waste - Permissive Waste
Permissive waste occurs when the tenant fails to perform an affirmative duty imposed on him. Permissive waste is caused by an omission to act rather than affirmative conduct.
