Estates in Land

Question 1

Defeasible Estates

Answer 1

Estates may terminate before its maximum duration has run

1- determinable (durational)
2- subject to condition subsequent
3- subject to executory interest

Question 2

If a grant is unclear

Answer 2

1. a covenant is preferred over a defeasible estate AND a fee simple subject to a condition subsequent is preferred over a fee simple determinable because damages is preferred over forfeiture

Question 3

Life Tenant’s duties

Answer 3

1. duty to REPAIR, limited to the extent of the income derived or to the reasonable rental value of the land
2. duty to pay the INTEREST on a mortgage, to the extent of profits derived from the property
3. duty to pay ordinary TAXES, to the extent of profits derived from the property

Question 4

What are the future interest classifications?

Answer 4

1. Fee Simple Determinable- Possibility of Reverter (automatic);
2. Fee Simple subject to a condition subsequent- Right of Re-entry (grantor must act)
3. Fee Simple subject to an executory interest- springing executory interest
4. Life Estate- Reversion

Question 5

Fee Simple Determinable- Possibility of Reverter (automatic)

Answer 5

ComLaw- transferable by intestacy only

Modern- Transferable, devisable, descendible

Question 6

Fee Simple subject to a condition subsequent- Right of Re-entry (grantor assert right)

Answer 6

ComLaw- transferable by intestacy only

Modern- not transferable inter vivos (majority) , devisable (majority), descendible (all states

Question 7

2 types of Executory Interests

Answer 7

1. Springing- follows a gap in possession, interest passes from grantor to grantee
2. Shifting- cuts short a prior estate, passes from one grantee to another

Question 8

A remainder is vested if

Answer 8

1. names an ascertainable person
2. not subjective to a condition precedent

ComLaw- descendible, devisable, no inter vivos transfers

ModLaw-fully transferable

Question 9

Doctrine of Destructibility of Contingent Remainders:

Answer 9

1. fails to vest
2. merger doctrine
3. holder surrenders the interest

Question 10

Mergers occurs when…

Answer 10

1. a present estate is surrendered to the owner of a future estate
2. a future estate is surrendered to the owner of a present estate
3. when holders of future and present estates convey interest to a 3rd party

Question 11

Vested Remainder Subject to Open (Partial Divestment)

Answer 11

1. has been made to a class
2. has at least one ascertainable member that has satisfied any condition
3. other members may join later

Question 12

Vested Remainder Subject to Total Divestment

Answer 12

1. presently vested but may terminate on the happening of a future event

Question 13

Shelly’s Case

Answer 13

A is granted a life estate and the remainder is given to A’s heirs, resulting in A getting a fee simple absolute

Question 14

Doctrine of Worthier Title

Answer 14

prohibits remainders in the grantor’s heirs.

***Grants are better by descent than devise

Question 15

Ameliorative Waste is permissible if…

Answer 15

1. the market value of the remainderman’s interest is not impaired; AND
2. it is permitted by the remainderman; OR
3. a substantial and permanent change in the neighborhood has deprived the property of a reasonable current value

Question 16

Who can sue for waste and in what circumstances?

Answer 16

1. the holder of a reversion can sue for an injunction or damages for past or future waste
2. a contingent remainderman may only sue for injunction to prevent future waste

Question 17

Restraints on Alientation

Answer 17

1. disabling restraints are always void
2. forfeiture restraints are only valid for life estates and future interests if reasonable
3. promissory restraints are only valid for life estates and future interests if reasonable ; breach mean that the promisor is liable for damages

Question 18

Rule of Convenience

Answer 18

1. a class closes when a member of the class is entitled to distribution

***ask who is alive at the time of the conveyance

Question 19

Powers of appointment

Answer 19

1. general power of appointment- right to appoint the property to anyone
2. special power of appointment- right to appoint property to a limited class of persons

Question 20

The rule against perpetuities

Answer 20

no interest is good unless it must vest, if at all, not later than 21 yes after some life-in-being at the creation of the interest

***might-have-been rule- if its possible to exceed the 21 years, the clause is void

Question 21

What interests are subject to the rule against perpetuities?

Answer 21

1. contingent remainders
2. executory interests
3. vested remainder subject to open
4. purchase options
5. ROFR
6. Powers of appointment

Question 22

Special Exception for the rule against perpetuities

Answer 22

1. charity-to-charity Rule: shifting executory interest from one charity to another
2. Uniform Statute Rule Against Perpetuities: vests or terminates within 90 years (determined after the fact)

Question 23

Tenancy In Common

Answer 23

1. Each co-tenant owns an undivided interest in the whole of the property w/ no right of survivorship
2. requires unity of possession

***DEFAULT

Question 24

Tenancy In Common can be transferred

Answer 24

1. voluntarily- conveyance, lease, mortgage

2. involuntarily- foreclosure , or execution of a creditor’s lien

Question 25

Joint Tenancy

Answer 25

1. Each co-tenant owns an undivided interest in the whole of the property w/ the right of survivorship 2. Requires unity of Time, Title, Interests & Possession

Question 26

A Joint Tenancy is severed when

Answer 26

1. one joint tenant conveys his interest voluntarily; or 2. involuntarily- creditors foreclosure 3. upon severance, joint tenancy becomes a tenancy in common

Question 27

If both joint tenants join in a mortgage of the subject property, then

Answer 27

the joint tenancy will not be severed

Question 28

Mortgages involving joint tenancy in Lien Theory

Answer 28

Majority- no severance because mortgagee only receives a lien

Question 29

Mortgages involving joint tenancy in TItle Theory

Answer 29

Minority- severance because mortgagee receives title

Question 30

Tenancy by the Entirety

Answer 30

1. reserved for married couples 2. any attempted conveyance is void 3. Includes right of survivorship

Question 31

An out-of-possession co-tenant has what rights?

Answer 31

1. the right to share in rents and profits derived from 3rd parties 2. no right to demand rent from a co-tenant unless there was a wrongful ouster