Estates in Land / Future Interests

Question 1

Present Possessory Estate

Answer 1

FSA, Defeasible Fees (FSD, FSSCS, FSSEL), Fee Tail, Life Estate

Question 2

Future Interests

Answer 2

Reversionary interests (POR, Right of Entry, Reversion), Remainders (contingent, indefeasibly vested, vested remainder subject to complete defeasance, vested remainder subject to open), Executory Interests (springing / shifting)

Question 3

Fee Simple Absolute (FSA)

Answer 3

Words: To A / To A and his heirs
Duration: Potentially infinite
Transferability: Devisable, descendible, alienable
FI: none (no RAP applicability)

Question 4

Fee Simple Determinable (FSD)

Answer 4

Words: To A so long as / until / while (clear durational language)
Duration: Until the event occurs (automatic termination)
Transferability: Devisable, descendible subject to condition, alienable
FI: POR (no RAP applicability)

Question 5

Fee Simple Subject to Condition Subsequent

Answer 5

Words: To A, but if X happens, grantor RESERVES THE RIGHT TO REENTER AND RETAKE
Duration: Until the condition happens AND the grantor/holder of the right of entry timely exercises power of termination
Transferability: Devisable, descendible subject to condition, alienable
FI: Right of Entry / Power of Termination held by grantor (no RAP applicability)

Question 6

Fee Simple Subject to Executory Limitation

Answer 6

Words: To A, but if X happens, then to B
Duration: Until condition happens
Transferability: Devisable, descendible subject to condition, alienable
FI: Executory Interest (held by 3P i.e., B) (RAP might apply)

Question 7

Life Estate

Answer 7

Words: To A for life; To A for the life of B (pur autre vie)
Duration: Life of A; life of B
Transferability: Alienable, devisable and descendible if measuring life is still alive
FI: Reversion (if held by grantor); remainder (if held by 3P) (RAP might apply to remainder)

Question 8

Rights and Duties of a Life Tenant

Answer 8

No damages to the interest of the person who owns the remainder or the reversion (no waste)
Exception: Exploiting land is OK if it is in a reasonable amount where necessary for repair/maintenance; life tenant is expressly given right to exploit; land was previously used in exploited way; OR land is suitable only for such exploitation e.g., a mine.

Question 9

Open Mines Doctrine (Life Tenant’s Waste)

Answer 9

If mining was done on land before life estate began, life tenant may continue to mine the property in mines ALREADY open. No new mines.

Question 10

Possibility of Reverter

Answer 10

Land reverts back to the grantor; arises automatically; interest passes to grantor’s heirs and can be transferred inter vivos; No RAP

Question 11

Right of Entry

Answer 11

Upon happening of a condition, grantor has right (if he reserved it) to reenter and retake; must exercise the right; not automatic. No RAP

Question 12

Reversion

Answer 12

Arises in a grantor who transfers an estate of LESSER DURATION than she started with, other than an FSD or a FSSCS. No RAP.

Question 13

Remainder

Answer 13

Future interest created in a transferee that is capable of taking in present possession and enjoyment upon the natural termination of the preceding estates created in the same disposition; must be expressly created (follows life estate, never follows FS)

Question 14

Indefeasibly Vested Remainder

Answer 14

Must be held by ascertained person and cannot be subject to being divested or diminished in size…
No strings attached; holder is certain to acquire an estate in the future. No RAP.

Question 15

Vested Remainder Subject to Open

Answer 15

Remainder created in a class of persons that is certain to take on termination of the preceding estates, but is subject to diminution by reason of other persons becoming entitled to share in the reaminder (subject to partial divestment). RAP potentially applies
Class CLOSES when any member can demand possession

Question 16

Vested Remainder Subject to Complete Defeasance (Total Divestment)

Answer 16

Remainderman is in existence and ascertained and his interest isn’t subject to a CP, but rather a CS (e.g., To A for life, remainder to B and, but if at B’s death he isn’t survived by issue, to C and his heirs.)

Question 17

Condition Subsequent: Comma Rule

Answer 17

You have a CS if conditional language in a transfer follows language that, taken alone and set off by commas, would create a vested remainder

Question 18

Contingent Remainder

Answer 18

(1) created in an unsascertained or unknown person OR (2) is subject to an unmet CP
(1) “To A for life, then to B’s first child” and B has no kids - B’s child is unknown person
(2) “To A for life, then, if B graduates from college, to B” - B’s graduating is a CP to his obtaining the interest; O still has a reversion (after A dies if B hasnt graduated)

Question 19

Shifting Executory Interest

Answer 19

Divests a transferee

Question 20

Springing Executory Interest

Answer 20

Divests the transferor

Question 21

RAP: Procedure

Answer 21

(1) Determine which future interests have been created by the conveyance (applies only to contingent remainders, executory interests, and certain vested remainders subject to open; doesn’t apply to indefeasibly vested remainders, vested remainders subject to complete defeasance, or future interests in O)
(2) Determine what has to happen for the future interest holder to take
(3) Find a measuring life–whose life is relevant to what has to happen?
(4) Determine whetehr we will know for sure within 21 years after the death of the measuring life if the future interest holder can take. If so, no problem. If not, RAP precludes the condition.

Question 22

Wait and See / Second Look Doctrine

Answer 22

Validity of future interest is determined on the basis of the facts as they now exist, at the conclusion of the measuring life (you have to wait for the measuring life to end instead of just striking)

Question 23

Cy Pres Doctrine

Answer 23

If a given disposition / transfer violates the RAP, a court may reform it in a way that most closely matches the grantor’s intent, while still complying with the RAP

Question 24

Joint Tenancy

Answer 24

Two or more own with the right of survivorship (must have clear expression of the right of survivorship); must have 4 unities

Question 25

Four Unities of a Joint Tenancy

Answer 25

TTIP: TIME, TITLE (same deed), identical INTERESTS, identical rights to POSSESS the whole (can use a straw to bypass the time and title issue)

Question 26

Powers of a JT

Answer 26

Alienable inter vivos (creates a TIC); not devisable or descendible because of the right of survivorship

Question 27

Right of Survivorship

Answer 27

Last JT takes it all; JT1’s share passes automatically to other JTs if JT1 dies

Question 28

Severance of a joint tenancy

Answer 28

SPAM: Sale, Partition And Mortgage
Sale: JT sells/transfers interest; allowed, but severs the joint tenancy and buyer is a TIC
Partition: In Kind: physical division of prop; Forced sale: proceeds divided up; Voluntary: nonlitigous
Mortgage: Lien: JT can mortgage without severing; Title: JT severs joint tenancy by mortgaging

Question 29

Tenancy by the Entirety

Answer 29

Married people who take as “one person” with the right of survivorship; usually must be expressed that they’re married; creditors cannot reach into the tenancy for satisfaction of the debt of one spouse; one spouse cannot unilaterally defeat the right of survivorship by conveyance to a 3P

Question 30

TIC

Answer 30

Each cotenant owns an individual part, and each has the right to possess the whole; devisable, descendible, alienable

Question 31

Rights and duties of co-T

Answer 31

Possession of the WHOLE despite their percentage of interest; no ousting; share in rent from 3Ps; pay fair share of carrying costs, do repairs, NO improvemnents or waste; right to bring partition