Estates and Present Interests Flashcards
Types of Freehold Estates
(1) Fee Simple
(2) Defeasible Fees
(3) Fee Tail [not tested]
(4) Life Estate
Fee Simple
Owner holds title to the land and may use, sell, or rent the land at will
(1) Present possessory interest
(2) No future interest is created
(3) Freely Alienable
(4) Devisable
(5) Descendible
Fee Simple Language
“Owner to X”
“Owner to X and her heirs”
“Owner to X forever and ever”
“Owner to Corp. X, its successors, and assigns”
Note: if a conveyance or devise is ambiguous, presume fee simple
Types of Defeasible Fees
(1) Fee Simple Determinable
(2) Fee Simple Subject to a Condition Subsequent
(3) Fee Simple Subject to Executory Limitation
Defeasible Fees In General
May terminate upon the occurrence of some future event or condition
Fee Simple Determinable
(1) Future interest is retained in the transferor and her heirs
(2) Possibility of Reverter
(3) Freely alienable
(4) Devisable
(5) Descendible
Possibility of Reverter
(1) Estate is AUTOMATICALLY terminated by the holder of the future interest upon the occurrence of some future event/condition
(2) Becomes possessory when the event/condition occurs
Applies to Fee Simple Determinable
Fee Simple Determinable Language
“During, so long as, until, while, etc.”
“O conveys to X and her heirs UNTIL Alaska secedes from the United States”
Fee Simple Subject to Condition Subsequent
(1) Future interest retained in the transferor and her heirs
(2) Right of Entry/Power of Termination
Right of Entry/Power of Termination
(1) Estate MAY BE terminated by the holder of the future interest when the event/condition occurs
(2) Could become possessory when the event/condition occurs
Applies to Fee Simple Subject to Condition Subsequent
Fee Simple Subject to Condition Subsequent Language
“But if, on condition that, provided that, provided however, etc.”
“O conveys to X and her heirs BUT IF Alaska secedes from the United States, THEN Y has the right to re-enter and reclaim the land”
Fee Simple Subject to an Executory Limitation
(1) Future interest is created in a 3dp [Springing or Shifting Interest]
(2) AUTOMATICALLY terminates and transfers to the 3dp
Springing Interest
Divests the transferor
“To X when she marries”
Shifting Interest
Divests the transferee
“O conveys to A and her heirs UNTIL Alaska secedes from the United States, THEN to B and her heirs”
Fee Simple Subject to an Executory Interest Language
Same as Fee Simple Determinable and Fee Simple Subject to a Condition Subsequent
“O conveys to X and her heirs SO LONG AS Alaska does not secede from the United States, THEN to Y and her heirs”
Note: if a deed grants land for an ambiguous purpose, presume a fee simple determinable
