Future Interests Flashcards
What is an executory interest?
If someone other than the grantor holds an interest that is preceded by either a vested remainder subject to divestment or a fee simple subject to an executory limitation, then that person holds an executory interest.
What future interest does a grantor retain?
If a grantor retains a future interest, then it is a reversion, a possibility of reverter, or a right of entry.
What future interest does a beneficiary retain?
If a beneficiary is given a future interest, then it is either a remainder or an executory interest.
What is the name of the future interest in a holder who is ascertainable, when there is no express condition precedent required before the interest becomes possessory?
Vested remainder
What is a possibility of reverter?
When the grantor conveys a fee simple determinable estate, he is deemed to have retained a possibility of reverter, wherein the right to possession reverts to the grantor, and the fee simple estate automatically ends, upon the happening of a specified condition or event.
What is a right of entry?
When the grantor conveys a fee simple estate subject to a condition subsequent, then upon the happening of the condition subsequent, the grantor is deemed to have retained the right to enter or retake possession, but the fee simple does not end automatically.
What is a reversion?
A reversion is a future interest in which the grantor has the right to possess the property after a finite estate ends.
If the grantor does not convey his entire interest but does not explicitly retain an interest, then a reversionary interest is implied.
