Future Interests

Question 1

Reversions

Answer 1

• always retained by the grantor

-

Question 2

Remainders

Answer 2

• always created in someone other than the grantor

-

Question 3

Defeasible Fee Simple estates

Answer 3

Fee Simple Determinable
Fee Simple Subject to a Condition Subsequent
Fee Simple Subject to an Executory Limitation
- ALL can be set up so they may be divested and/or expire “early” (and thus fall short of full potential duration)

Question 4

Fee Simple Determinable Termination

Answer 4

• ends automatically
• right to immediate possession REVERTS to grantor upon the occurrence of a stated event
• aka possibility of reverter
• “to B and his heirs until people land on Mars.”
• stated event can be thought of as both:
  a “condition precedent” of the possibility of reverter,
  and
  a special limitation on the duration of the fee simple.

Question 5

Fee Simple Subject to a Condition Subsequent Termination

Answer 5

• ends at grantor’s election
• land goes to grantor
• right of entry
• meets its “early” end by divestment.

Question 6

Fee Simple Subject to an Executory Limitation Termination

Answer 6

• ends automatically
• land goes to third party
• executory interest

Question 7

fee simple determinable words of conveyance

Answer 7

words of duration
so long as
while
until 
during

Question 8

Right of Entry

Answer 8

a future interest
retained by a grantor
when the grantor creates a fee simple on condition subsequent.
- IF the stated event occurs, and
IF the grantor elects to exercise the right of re-entry and retake possession,
THEN the grantee’s estate is cut short (“divested”)

Question 9

fee simple subject to condition subsequent words of conveyance

Answer 9

first create a fee simple (the words “and his heirs” indicate this)
then add a condition subsequent ==> “on the condition that the land be used for residential purposes”
then create the right of re-entry for condition broken.
but if
on the condition that
provided
(without EXPRESS words of re-entry –> generally considered fee simple conveyance)

Question 10

Executory Limitation

Answer 10

future interest in a third-party

Question 11

vested remainder

Answer 11

remainderman’s right to immediate possession is without pre-conditions (except expiration of the the prior estate).

• “to A for life, then to B and his heirs”

Question 12

contingent remainder

Answer 12

remainderman’s right to immediate possession is subject to a condition precedent

• to A for life, then to B and her heirs if B marries C
• can never follow a non-freehold particular estate. (term of years, periodic tenancy, tenancy at will

Question 13

vested remainder SUBJECT TO DIVESTMENT

Answer 13

“to A for life, then to B and his heirs, but if B does not reach the age of 21, then to C and his heirs.”

• condition subsequent can cut off B’s vested remainder

Question 14

“shifting” executory interest

Answer 14

C has:

“to A for life, then to B and his heirs, but if B does not reach the age of 21, then to C and his heirs.”

Question 15

alternative contingent remainders

Answer 15

“to B for life, then to C and his heirs if C goes straight to college after high school, otherwise to D and her heirs”

Question 16

VESTED REMAINDERS SUBJECT TO OPEN

Answer 16

to a class of recipients (e.g., "remainder to my children"), and
at least one member of the class is born and ascertained, and
other members may be added to the class later.

• “to B for life, remainder to B’s children and their heirs”

Question 17

executory interest

Answer 17

a future interest
in someone other than the grantor
having one or more of the following features:
it directly follows a fee simple, and/or
it divests (“cuts short”) the prior estate, and/or
it directly follows possession by the grantor

Question 18

springing executory interest

Answer 18

a future interest that causes possession of the freehold to “spring” out of the grantor
1. “to L for life, then one day after L’s death to E and her heirs” – a “gap” after the particular estate

2. “to E and his heirs beginning 2 years from the date hereof” – no intervening particular estate at all

Question 19

Destructibility of Contingent Remainders

Answer 19

when condition precedent is not met in contingent remainder