Future Interests Flashcards
What does the future interest holder have?
Future right to possession of property
What does the possessory estate holder have the right to?
Current possession of the property.
What is fee simple absolute?
Largest estate because it can last forever.
What are defeasible fee estates?
A fee simple that can be cut short (could go on forever but may be cut short)
- Fee simple determinable
- Fee simple subject to condition subsequent.
What is a fee simple determinable?
A fee simple for a durational period.
- “so long as”
- “while”
- “during which time”
- possibility of reverter is held by the grantor
- reverter happens automatically
What interest does the words “so long as” create?
Fee simple determinable
What interest does the words “while” create?
Fee simple determinable
What interest does the words “during which time” create?
Fee simple determinable.
What is fee simple subject to condition subsequent?
A fee simple estate that is terminated upon the happening of an event or condition.
- created by “but if”
- right of entry must be elected and does not happen automatically
What interest does the phrase “but if” create?
Fee simple subject to condition subsequent.
What is a life estate?
Present possessory estate that ends at the death of the life tenant.
- reversion is held by the future interest holder.
Reversion
- the future interest in a life estate
- held by the grantor
- becomes possessory at the natural termination of the grantee’s life estate.
What are the three potential future interests that can be held by a grantor? And what property interest are they associated with?
1) Possibility of reverter (fee simple determinable)
2) Right of re-entry (fee simple subject to condition subsequent)
3) Reversion (life estate)
What is a remainder?
A future interest capable of becoming possessory at the natural termination of the prior estate.
- held by transferee
What is a vested remainder?
- Remainderman is ascertained and there is not a condition precedent.
