Estates & Future Interests Flashcards
What language creates Fee Simple Subject to Condition Subsequent?
“To A. But of X happens, grantor reserves the right to reenter and retake.”
What language creates Fee Simple Subject to Executory Limitation
“To A, but if X event occurs, then to B.”
What ownership rights does a Fee Simple Absolute holder have?
Freely devisable, descendible, and alienable.
Historically, who did the fee tail pass to?
Grantee’s lineal blood descendants, no matter what.
Today, what interest is created by an attempted fee tail creation?
Fee simple absolute.
What are the 3 defeasible fees and their corresponding future interests?
(1) Fee Simple Determinable / Possibility of Reverter
(2) Fee Simple Subject to Condition Subsequent / Right to Reenter
(3) Fee Simple Subject to Executory Limitation / Shifting Executory Interest
Can words of mere desire create a defeasible fee?
no
What kind of restraints on property alienation are void?
Absolute restraints
How is a life estate measured?
In terms of a lifetime (not years)
What is the name for a life estate measured by someone other than the grantee?
Life estate pur autre vie
What are the two general rules for waste regarding life tenants?
(1) Life tenant entitled to all ordinary uses and profits from the land
(2) Life tenant must not commit waste (i.e., hurt future interest holders)
List and define the kinds of waste.
(1) Voluntary or affirmative – overt conduct that causes a drop in value (willful destruction)
(2) Permissive – land allowed to fall into disrepair
(3) Ameliorative – acts that enhance the property’s value
When may a life tenant consume natural resources without committing waste?
(1) Prior Use (exploitation before grant)
(2) Repairs and maintenance
(3) Granted the right
(4) Exploitation is all land is suited for
What possessory estate does the possibility of reverter accompany?
Fee simple determinable
What possessory estate does the right of entry accompany?
Fee simple subject to condition subsequent
What possessory estate does the right of reversion accompany?
Any estate that is less than what the transferor started with.
What possessory interest does a remainder never follow?
A defeasible fee
Can a remainder follow a fee simple determinable?
No. Remainders cannot follow fee simple estates of potentially unlimited duration.
When is a remainder vested?
When both:
(1) its holder is ascertained, and
(2) there is no condition precedent
What was the common law Rule of Destructibility of Contingent Remainders? What is the rule today?
- Historically, the rule said remainders that were still contingent at the time the preceeding estate ended were destroyed
- Today, the rule says O or O’s heirs hold the property until the contingency is satisfied
What was the Rule in Shelley’s Case? What is the modern rule?
- Rule: When granted present and future interests in property, the interests would merge.
- Modern rule: the interests are not merged
What is the Doctrine of Worthier title?
It prevents creating future interests in one’s heirs, creating instead a reversion in grantor.
What is the significance of the Rule in Shelly’s case being a rule of law, and the Doctrine of Worthier Title being a rule of construction?
Rules of construction can be overcome by grantor’s clear intent, while rules of law cannot.
What are the 3 kinds of vested remainders?
(1) indefeasibly vested remainder
(2) vested remainder subject to complete defeasance,
(3) vested remainder subject to open
Describe a vested remainder subject to open.
A remainder is vested in a group of takers, at least one of whom can still join.
What is the common law rule of convenience for vested remainders subject to open?
The class closes whenever any member can demand possession.
What does a shifting executory interest cut short?
A defeasible fee
What does a springing executory interest cut short?
A grantor’s fee
To which interests does the rule against perpetuities apply?
contingent remainders, executory interests, and some vested remainders subject to open
When does a gift to an open class always violate the rule against perpetuities?
When it is conditioned on the members surviving to an age beyond 21.
When does a shifting executory interest always violate the rule against perpetuities?
When there is no time limit on it vesting.
Is a gift from one charity to another subject to the rule against perpetuities?
no
What is the effect of the “wait and see” or “second look” doctrine?
The validity of any suspect future interests is determined at the end of the measuring life, eliminating any “what if” inquiries under the rule against perpetuities.
What is the Uniform Statutory Rule against Perpetuities?
Codification of the common law RAP providing for an alternative 90 year vesting period.
Under the doctrine of waste, what IS a life tenant entitled to?
all ordinary uses and profits from the land
What are the three kinds of waste?
(1) voluntary or affirmative
(2) permissive
(3) ameliorative
What are the exceptions for voluntary waste?
(1) Prior Use
(2) Repairs
(3) Grant
(4) Exploitation
What is the prior use open mines doctrine?
If mining was done before the life estate began, the life tenant can continue to mine the mines already open, but may not open any new mines.
What taxes is a life tenant obligated to pay?
Taxes from income or profits, or the fair rental value, if there is no income or profit.
When is a life tenant allowed to tear down a structure without committing waste?
When changed circumstances have rendered the structure uninhabitable
