Final Flashcards
Seisin
person who actually has possession of land
Four kinds of Fee simple
Fee Simple Absolute, Fee Simple Determinable, Fee Simple on or subject to a condition subsequent, Fee Simple on or subject to executory interest
Fee Simple Absolute
Largest interest in property. last forever unconditionally and without limitations as far as ownership in law recognizes. MODERN - courts prefer FSA so there is no need for magic words. COMMON LAW - “and his heirs” required to create a FSA because courts favored Life Estates. FSA is inheritable, alienable, and devisable.
Escheat
no heirs (no will) whatsoever, MODERN - goes to the state, CL - went to the overlord
Fee Simple Determinable
“to A for so long as”. Fee simple until the occurrence of a given event. If the event occurs, estate automatically terminates. O retains possibility reverter.
Fee Simple Subject to a Condition Subsequent
Grantor retains the right to enter and terminate the estate. O retains right of entry or power of termination.
Fee Tail
Passes land to future generations without end. Created by “to A and his heirs of his body”. Not used modernly (4 states still have it). MAJORITY - creates a FSA. MINORITY - LE to named transferee and a remainder in FSA to Life Tenant’s issue. VERY FEW - Fee tail to named transferee and FSA in transferees issue.
Life Estate
Created by “to A for life”. Estate endures for A’s life. Not inheritable unless it is an estate pur autre vie (life of another)
Waste
Absent agreement to contrary, generally not allowed to commit waste at CL. Modernly, trend that ameliorative waste is not actionable if tenancy will last a long time
Open Mines Doctrine
Exception to law of waste. If at time life estate created property already being used for that purpose (mining, timber, ect) these could be continued and not be considered waste
Five Future Interests
Possibility of Reverter, Right of Entry, Reversion, Remainder (vested or contingent), Executory.
6 Present Estates/Future Interest that Follows
FSA FSD/Possibility of Reverter FSCS/Right of re-entry FT/Reversion, remainder LE-/Reversion, remainder FSEL/Executory Interest
Contingent Remainder v. Vested Remainder
Contingent Remainder:
Unborn and unascertained person
Subject to a condition precedent
Vested Remainder:
Born and ascertained person
Not subject to a condition precedent
Condition Precedent
Only takes if something happens. On final it will be placed before and most likely separated with a comma.
Rule of Convenience (for closing classes)
If A dies and two members of an open class are ready for the land to vest but still possibility of more class members, class closes because interests are ready to vest.
Executory Interest
Future Interest in a 3rd party that: 1. cuts short the preceding present possessory estate OR vested FI OR 2. takes affect after a gap in time
Common Law rules limiting Future Interest
Rule in Shelley’s Case, Doctrine of Worthier Title, Destructability of CR, and Rule against Perpetuities (this is only one on test)
Merger Rule
If you have a vested interest in property, and no interest in between them, you put them together in largest interest
Rule Against Perpuities
No contingent future interest created in transferee is good unless it must necessarily vest, if at all, not later than perpetuities period (21 years) of some life in being at time of conveyance.
Policy Rationale Behind RAP
Further alienability of property. Applies to CR, EI, VRO. Undue concentration of wealth. Dead hand control.
RAP applies to:
CR, EI, VRO, VROD
Charitable Gift Exception
If defeasible fee is in a nonprofit (1st taker) and 2nd taker is a charity, RAP doesnt apply.
RAP Reforms:
- Wait and See for CL RAP period
2. US RAP (Uniform Statutory RAP) - 90 years wait and see
Cy Pres
allows court to reform a gift to conform to RAP and still trying to accomplish grantors intent
Perpuities Saving Clause
Identify measuring life
Ab Initio
from outset
O -> A and his heirs 25 years from now
RAP violation?
Most courts today and early CL said this was special kind of EI. We know exactly what is going to happen. It is treated as a VR. But, some courts will treat as RAP strikes.
RAP and commercial and option to purchase
RAP applies to commercial. Option to purchase - RAP can apply (Majority). If O retains right to re-enter upon repayment of A’s purchase, this violates RAP.
Concurrent Interest
- Tenancy in Common
- Joint Tenancy with Right of Survivorship
- Tenancy by the entirety
CL presumed JTWROS
MODERN presumes TC
Tenancy In Common
- 2 or more at same time
- might have different percentages of land
- separate but undivided interest
- devisable, inheritable, alienable
Joint Tenancy With Right of Survivorship
- Each seised of his percentage fractional interest but also of the whole
- Alienable
- Four Unities must be present:
1. Unity of time (take at same time)
2. Unity of title (take by same instrument
3. Interest (same percentage)
4. Possession (able to possess the whole)
CL- if instrument silent but all 4 unities present, JTWROS created.
MODERN- instrument must be clear to create JTWROS
Tenancy by the Entirety
- Only between husband and wife (marriage)
- legally married
- Not recognized in all states (minority rule)
- Need all five unities (marriage being the 5th)
- Can not sever unilaterally
- Divorce terminates. Becomes whatever divorce decree says. SPLIT OF AUTHORITY when it is silent, slight majority says JTWROS
Rights and Obligations among Co-Tenants: Rent
Occupying tenant does not generally owe other tenants rent so long as he is not excluding or ousting other co-tenant. If exclude or oust a co-tenant, owe fair market value of rent.
Rights and Obligations among Co-Tenants: 3rd party’s rent
Each co-tenant is owed his share of the rent actually received.
Carrying Charges
Property tax, HOA fees, principle and interest (mortgage/note payment). Entitled to contribution immediately for pro rata share.
Necessary repairs
No right to immediate contribution but right to credit at sale or partition (actual cost)