future interest

Question 1

fee simple

Answer 1

default

created when the grantor coveys property forever or may be terminated upon occurrence of an event. defeasible fee is a conveyance in fee simple with express conditions on the conveyance

Question 2

defeasible fee

Answer 2

gives the grantee present possessory interest, but reserves a future interest in property in favor of grantor or third party

three types:
fee simple determinable
fee simple subj to condition subsequent
free simple subject to exec interest

Question 3

fee simple determinable

Answer 3

conditional conveyance in which grantor retains possibility of reverter that vests automatically when condition is not met

this is done with durational language (while property is used for farming; during the property use as farm; until property is no longer used as farm)

Question 4

fee simple subj to condition subsequent

Answer 4

conditional conveyance in which grantor retains a right of entry that does NOT vest automatically when condition is not met - the grantor must expressly reclaim property to exercise his re-entry

this requires conditional language (provided that the property is used for farming; on the condition that the property is used for farming)

Question 5

fee simple subj to executory interest

Answer 5

conditional conveyance in which a third party is granted an executory interest in the property. it is a future interest that terminates an earlier interest

the third party has exec interest

third party interest can be shifting or springing

Question 6

springing executory interest

Answer 6

divests the grantor

Question 7

shifting exec interest

Answer 7

divests prior grantee

“O conveys Greenacre to A and his heirs, but if Greenacre is no longer used as a farm, then to B and her heirs” B has shifting executory interest b/c B interest divests A interest (prior grantee)

Question 8

life estate

Answer 8

present possessory estate that terminates when measuring life dies

is transferrable, but transferee interest terminates upon death of measuring life

Question 9

reversion

Answer 9

if possession of land goes back to grantor after life estate terminates, grantor retains the future interest of reversion

Question 10

remainder

Answer 10

if possession of land after life estate goes to third party, the third party has future interest of remainder (either vested or contingent)

Question 11

vested remainder

Answer 11

future interest that is both given to an ascertained (readily identifiable) grantee AND not subject to a condition precedent (condition that must be satisfied in order for the interest to vest)

Question 12

contingent remainder

Answer 12

future interest that does not meet either of the requirements of a vested remainder