Estates in Land Flashcards
How is a “Fee Simple Absolute” formed?
“to A” or “to A and his heirs”
What estate does a fee simple absolute convey?
absolute ownership of potential infinite duration
What are a fee simple absolute’s distinguishing characteristics?
- devisable
- descendible
- alienable
What does it mean if an estate is “devisable”?
it can pass by will
What does it mean if an estate is “descendible”?
it will pass by the statutes of intestacy if its holder dies intestate
What does it mean if an estate is “alienable”?
it is transferable inter vivos, or during the holder’s lifetime
Does a fee simple absolute have an accompanying future interest?
NO!
How does one create a “fee tail”?
“to A and the heirs of his body”
What are the distinguishing characteristics of a fee tail?
virtually abolished
Historically, the tail would pass directly to the grantees lineal blood descendants - no matter what
Today, if a party attempts to create a “fee tail” what do they actually create?
A fee simple absolute
Does a fee tail have an accompanying future interest?
In the grantor: a reversion
In third party: remainder
What are defeasible fees?
fee simple estates (uncertain or potentially infinite duration) that can be terminated upon the happening of a stated event
What are the three defeasible fees?
- Fee Simple Determinable- Possibility of Reverter
- Fee Simple Subject to Condition Subsequent - Right of Entry
- Fee Simple Subject to an Executory Interest
How does one create a fee simple determinable?
“To A for so long as…” “To A during …” “To A until…”
grantor must use clear durational language
If the grantee violates the condition created in a fee simple determinable, what result?
forfeiture of the estate is automatic
What are the distinguishing characteristics of a fee simple determinable?
- devisable
- descendible
- alienable
but always subject to the condition
Paul conveys Blackacre “to Ringo so long as the premises are used as a recording studio.” Ringo has:
a fee simple determinable
If Ringo is granted a fee simple determinable conditioned on the premises being used as a recording studio, and conveys the estate to Mick who seeks to convert the recording studio into a bowl-a-rama, may Mick do so?
NO - Not without forfeiting the estate
Can a party convey more than what they started with?
No - you can’t always get what you want
May convey less than what you started with, but cannot convey more
Does a fee simple determinable have an accompanying future interest?
Possibility of Reverter in the grantor
Frank Sinatra conveys Sinatra Place “to Orville Redenbacher, so long as popcorn is never made on the premises.” Classify the interests.
Orville:
Frank:
Orville: fee simple determinable
Frank: possibility of reverter
What does “FSDPOR” stand for?
Frank Sinatra Didn’t Prefer Orville Redenbacher
Fee
Simple
Determinable
Possibility
of
Reverter
How does one create a fee simple subject to a condition subsequent?
“to A, but if X event occurs, grantor reserves the right to re-enter and retake”
- must use durational language; and
- express reservation of the right to re-enter
What are the distinguishing characteristics of a fee simple subject to a condition subsequent?
not automatically forfeited, but can be cut short at the grantor’s option if the stated condition occurs
If a grantee violates the condition subsequent in a fee simple subject to a condition subsequent, what result?
Bobbi Brown - exercise his prerogative
Not automatically forfeited - but can be cut short at the grantor’s option
What are the distinguishing characteristics of a possibility of reverter?
It arises automatically when grantor conveys a fee simple determinable - it is devisable, descendible and alienable
Does a fee simple subject to a condition subsequent have an accompanying future interest?
Yes - the right of entry synonymous with the power of termination
How does one create a fee simple subject to executory limitation?
“to A, but if X event occurs, then to B”
passes to a third party rather than reverting to the grantor or giving the grantor a right to terminate
“To Barry Manilow, but if Manilow ever performs music on the premises, then to Mandy.” Classify the interests.
Manilow: fee simple subject to Mandy’s shifting executory interest
Mandy: a shifting executory interest
What are the distinguishing characteristics of a fee simple subject to executory limitation?
same as fee simple determinable - only now, if condition is broken, the estate is automatically forfeited in favor of someone other than the grantor
If the grantee violates the condition of a fee simple subject to executory limitation - what result?
automatically forfeit in favor of someone other than the grantor
Does the fee simple subject to executory limitation have an accompanying future interest?
Yes - the shifting executory interest
Are words of desire, hope, or intention sufficient to create a defeasible fee?
NO - courts will not find a defeasible fee unless clear durational language is used
“to A for the purpose of constructing a day care center.” Classify the interests.
A: fee simple absolute - not clear durational langage
“to A with the expectation that the premises will be used as a Blockbuster video store.” Classify the interests.
A is vested with a fee simple absolute - not clear durational language
If a grantor uses language that creates an absolute restraint on alienation, is the grant valid?
NO - absolute restraints on alienation are void
What is an absolute restraint on alienation?
It is an absolute ban on the power to sell or transfer, that is not linked to a limited time or purpose
O conveys: “To A, so long as she never attempts to sell.” Classify the interests.
A: vested with a fee simple absolute
O: has nothing
O conveys: “To A so long as she does not attempt to sell until the year 2015, when clouds on the title will be resolved.”
A has: fee simple determinable
O has: possibility of reverter
How does one create a life estate?
an estate measured in explicit lifetime terms, and NEVER in terms of years
O conveys: “To A for life.” Classify the interests.
A: life estate
O: reversion
If a grantee possess a life estate, what are they called?
the life tenant
What is a reversion interest?
a future interest in property that means at the end of the life tenant’s lifetime, the estate reverts back to the grantor or the grantor’s heirs
“To A for 50 years, if she lives that long.” Classify the interests.
A: term of years leasehold interest - NOT a life estate
What is a life estate pur autre vie?
A life estate that is measured by a life other than teh grantees
O conveys: “to Madonna, for the life of David Letterman.” Classify the interests.
Madonna: a life estate pur autre vie
O has: a reversion interest - at the end of Letterman’s life, the estate will revert back to O or O’s heirs
A life tenant is subject to what two general rules?
- life tenant is entitled to all ordinary uses and profits from the land
- life tenant must not commit waste - must not do anything to hurt the future interest holders
What are the three species of “waste” a life tenant must be concerned with?
- voluntary or affirmative waste
- permissive waste, or neglect
- ameliorative waste
What is voluntary or affirmative waste?
overt conduct that causes a drop in value - willful destruction
What is the general rule concerning voluntary waste and natural resources and life estates?
the life tenant must not consume or exploit natural resources on the property (such as timber, oil, or minerals unless one of four exceptions applies (PURGE)
What are the four exceptions to the general rule concerning voluntary waste and natural resources on life estates?
PU: prior use - prior to the grant, the land was used for exploitation (Open Mines Doctrine)
R: repairs - life tenant may consume natural resources for repairs and maintenance
G: grant - the life tenant may exploit if granted that right
E: exploitation - if the land is only suitable to exploit
What is the “open mines doctrine” surrounding voluntary waste and natural resources?
if mining was done on the land before the life estate began: the life tenant may continue to mine, but is limited to mines already open - cannot open new mines