Estates in Land Flashcards
Fee simple: 1) Rule for Alienability 2) What is it called when you reserve your chance to buy property back if person wants to sell?
1) Fee simple must be fully alienable (no direct restraints on transfers).
2) Right of first refusals okay
Life estate restraints on alienation
Allowed, even can have provision terminating Life Estate if they try to sell
General Rule of waste. What is voluntary waste? What is permissive waste?
What are the repair obligations of a life tenant?
Life tenant must maintain estate. Voluntary waste=any AFFIRMATIVE action that causes harm. Permissive = failure to maintain (duty to make ordinary repairs NOT replacements, only to extent of rents/profits, if none, just repair what you use, if you’re not on land, no repair obligation.
Tenants and taxes:
Tenant must pay ALL taxes on property (obligation extends ONLY to amount of rents/profits received from land, if none, limited to reasonable rental value of land IF life tenant is using land.
What if life tenant fails to pay taxes?
tax sale eliminates future interest so holder of future interest must make sure taxes get paid (buyer at tax sale takes property free of future interest)
Life tenant paying mortgage debt:
life tenant must pay interest on any mortgage but NOT principal payments (future interest holder pays principal. This obligation is limited to amount of rents/profits received, if no rents/profits, obligation limited to reasonable rental value IF LIFE TENANT IS USING LAND
Life tenant insurance
Optional but you don’t have to insure the property
What is ameliorative waste?
Tenant does something to increase value of property. When a changed condition makes property relatively worthless, tenant can change the property
When does RAP not apply?
To any future interest held by the Grantor because it is already vested
RAP definition
No interest is good unless it must vest, if at all, not later than 21 years after the death of some life in being at the creation of the interest
