Future Interests Flashcards
Grantor - Reversion
A reversion is when the grantor leaves himself with some interest in the land
Grantor - Possibility of Reverter
A possibility of reverter is granted concurrent with a fee simple determinable, and must be expressly reserved by the grantor. This means that the property will automatically revert back to the grantor upon the stated condition.
Grantor - Right of Entry
A right of entry is granted concurrent with a Fee Simple Subject to Condition Subsequent and gives the grantor the permission to re-enter and terminate the estate if the stated condition occurs. The estate does not automatically revert, but rather the grantor must re-enter the land and re-take possession.
3rd Party - Remainder
A remainder is a future interest granted in a 3rd party that will become possessory after the expiration of all previous estates. It cannot divest an estate nor follow a gap after the preceding estate and must be explicitly granted at conveyance.
Indefeasibly Vested Remainder
A vested remainder is a remainder one created in an existing and ascertained person and NOT subject to a condition precedent or divestment. Here,
Vested Remainder Subject to Open (divestment)
A Vested Remainder Subject to Open is a remainder that is usually granted to a class of people that is certain to become possessory, but is uncertain as to the a mount of class members that will share in the interest. Here,
Vest Remainder Subject to Complete Divestment
A Vested Remainder Subject to Complete Divestment is a vested remainder that is subject to condition subsequent, and may, upon the stated condition, fully expunge the 3rd party of all interest in the property. Here,
Contingent Remainders
A contingent remainder is a remainder that is subject to a condition precedent, and will only become possessory upon the happening of that stated event. Here,
Executory Interest
An Executory interest is one that will cut short the interest of a preceding estate holder or follows a gap in possession. Here,
Class Gifts
A class is a group of persons having a common characteristic. The share of each member is determined by the number of persons in the class. Can be subject to divestment or contingent. Here,
Limitations - Rule Against Perpetuities (RAP)
The rule against perpetuities states that “an interest must vest, it at all, no later than 21 years after some life in being at the creation of the interest.” RAP only applies to contingent remainders, executory interest, and vested remainders subject to partial divestment.
Limitations - Doctrine of Worthier Title
The Doctrine of Worthier Title states that a remainder in the grantor’s heirs becomes a reversion in the grantor. Here,
Limitations - Rule of Shelley’s Case
The Rule in Shelley’s Case states that if the same instrument created a life estate in A, and a remainder interest in A’s heirs, the remainder is not recognized and A is awarded a fee simple absolute. Here,
Limitations - Destructibility
The Rule of Destructibility states that if a contingent remainder fails to vest before the preceding estate expires, it is terminated. However, most states have abolished this rule and simply convert the contingent remainder into a springing executory interest. Here,
Restraints on Alienation
Generally, any restraints on the transferability of a legal interest are considered to be void.
