Freehold Estates

Question 1

Language to create a Fee Simple Absolute:

Answer 1

“To A and his heirs” or “To A”

Question 2

What is the Duration and Transferability of a Fee Simple Absolute?

Answer 2

Duration: Absolute ownership, of potentially infinite duration;
Tranferability: Passes automatically to grantee’s lineal descendants

Question 3

What future interests are created by a Fee Simple Absolute?

Answer 3

None

Question 4

Language to Create a Fee Tail:

Answer 4

“To A and the heirs of his body”

Question 5

Language to create a basic Defeasible Fee:

Answer 5

“To A so long as…”

Question 6

Language to create a Fee Simple Determinable:

Answer 6

“To A until…”
“To A while…”
Language providing that upon the happening of a stated event, the land is to revert to the grantor

Question 7

Language to create a Fee Simple Subject to a Condition Subsequent:

Answer 7

“To A, but if X event happens, grantor reserves the right to reenter and retake.”

Grantor must carve out right of reentry.

Question 8

Language to create a Fee Simple Subject to an Executor Limitation

Answer 8

“To A, but if X event occurs, then to B.”

Question 9

Language to create a Life Estate:

Answer 9

“To A for life.”

“To A for the life of B.”

Question 10

What is the Duration and Transferability for a Fee Tail?

Answer 10

Duration: lasts only as long as there are lineal blood descendants of grantee
Transferability: Passes automatically to grantee’s lineal descendants

Question 11

What is the Duration and Transferability for a Fee Simple Determinable?

Answer 11

Duration: Potentially infinite, so long as event does not occur.
Transferability: Alienable, devisable, descendible, subject to the condition.

Question 12

What is the Duration and Transferability for a Fee Simple Subject to Condition Subsequent?

Answer 12

Duration: Potentially infinite, so long as the condition is not breached and, thereafter, until the holder of the right of entry timely exercises the power of termination.
Transferability: Alienable, devisable, descendible; subject to the condition.

Question 13

What is the Duration and Transferability for a Fee Simple subjecto to an Executor Limitation?

Answer 13

Duration: Potentially infinite, so long as stated contingency does not occur.
Transferability: Alienable, devisable, descendible, subject to the condition.

Question 14

What is the Duration and Transferability for a Life Estate?

Answer 14

Duration: Measured by the life of tranferee or by some other life (pur autre vie);
Transferability: Alienable, devisable and decendable if pur autre view and measuring life is still alive.

Question 15

What is the future interest created by a Fee Tail?

Answer 15

Reversion (if held by grantor); Remainder (if held by third party)

Question 16

What is the future interest created by a Fee Simple Determinable?

Answer 16

Possibility of Reverter (held by grantor)

Question 17

What is the future interest created by a Fee Simple subject to a Condition Subsequent?

Answer 17

Right of Entry/Power of Termination (held by grantor)

Question 18

What is the future interest created by a Fee Simple subject to an Executive Limitation

Answer 18

Executory Interest (held by third party)

Question 19

What is the Future Interest created by a Life Estate

Answer 19

Reversion (if held by grantor); Remainder (If held by third party)

Question 20

What is a Fee Simple Absolute?

Answer 20

The grantor creates in another absolute ownership of potentially infinite duration. It is freely devisable, decendable, and alienable.

Question 21

Does the Fee Tail still exist in the U.S.?

Answer 21

No. It is practically abolished in the U.S.

Question 22

What is a Fee Simple Determinable?

Answer 22

The grantor uses clear durational language that creates a fee simple with a catch. If the stated condition is violated, then forfeiture is automatic.

Question 23

What is the mnemonic to remember what the Fee Simple Determinables accompanying future interest?

Answer 23

F.S.D.P.O.R.

Fee Simple Absolute = Possibility of Reverter

Question 24

How to create a Fee Simple Subject to Condition Subsequent?

Answer 24

Grantor must use clear durational language and state the right to reenter.

Question 25

What is a major difference between the Fee Simple Determinable and the Fee Simple Subject to a Condition Subsequent?

Answer 25

If the condition for a fee simple determinable is violated, the termination/ forfeiture is automatic. Whereas, if the condition for a fee simple subject to a condition subsequent is violated, the grantor must exercise the right to reenter.

Question 26

What interests do the Mandy and Barry have in the following Hypo?
“To Barry, but if Barry ever performs music on the premises, then to Mandy”

Answer 26

Barry: A fee simple subject to Mandy’s shifting executory interest.
Mandy: Shifting executory interest.

Question 27

What are the two important rules for construction for the Defeasible fees?

Answer 27

1. Words of mere desire, hope, or intention are insufficient to create a defeasible fee.
2. Absolute restraints on alienation are void.

Question 28

What does it mean that an absolute restraint on alienation are void?

Answer 28

An absolute restraint on alienation is an absolute ban on the power to sell or transfer, that is not linked to a reasonable time-limited purpose.

Question 29

How to create a Life Estate?

Answer 29

The estate must be limited in an explicit lifetime terms, and never in terms of years.

Question 30

What do O and A have in the following hypo?

“To A for Life.”

Answer 30

A is a life tenant and has a life estate. O has a reversion meaning that at the end of A’s lifetime, the estate reverts back to O or O’s heirs.

Question 31

What is a life estate pur autre vie?

Answer 31

A life estate measured by a life other than the grantees.

Question 32

What are two general rules regarding a life tenants ability to use his or her land?

Answer 32

1. A life tenant is entitled to all ordinary uses and profits from the land;
2. The life tenant must not commit waste.

Question 33

What are the three types of waste?

Answer 33

1. Voluntary or Affirmative Waste - This is the overt destruction of the land;
2. Permissive or Neglect - This occurs when land falls into disrepair;
3. Ameliorative - The life tenant must not engage in acts that will enhance the property’s value, unless all future interest holders are known and consent.

Question 34

What is the general rule for voluntary or affirmative waste?

Answer 34

The life tenant must not consume or exploit natural resources on the property (such as timber, oil, or minerals), unless one of the four exceptions applies (PURGE):

1. PU - Prior Use - prior to the grant, the land was used for exploitation;
2. R - Repairs - The life tenant may consume natural resources for repairs and maintenance.
3. G - Grant - The life tenant may exploit if granted that right;
4. E - Exploitation - The land is suitable only to exploit, such as a coal mine or quarry.

Question 35

What is the Open Mines doctrine as it applies to voluntary waste?

Answer 35

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. Thus, the life tenant cannot open any new mines.