Future Interests

Question 1

Possibility of Reverter

Answer 1

Fee simple determinable

Question 2

What is an example where the possibility of Reverter exists?

Answer 2

‘O, the grantor, conveys to ‘A’ so long as popcorn is never made on the premises

Question 3

‘O, the grantor, conveys to ‘A’ so long as popcorn is never made on the premises

Answer 3

‘A’ has the fee simple determinable

‘O’ has the possibility of Reverter

Question 4

Right of Re-Entry

Answer 4

Power to terminate, fee-simple subject to condition subsequent

Question 5

What is an example where the Right of Re-Entry exists?

Answer 5

‘O’ conveys to ‘A,’ but if coffee is ever consumed on site, grantor reserves the right to re-enter and retake.”

Question 6

‘O’ conveys to ‘A,’ but if coffee is ever consumed on site, grantor reserves the right to re-enter and retake.”

Answer 6

‘A’ has the fee simple subject to condition subsequent

‘O’ has the right of re-entry/power to terminate

Question 7

Reversion

Answer 7

Created in a grantor who transfers an estate of lesser duration that she started with other than a defeasible fee

Question 8

What is an example where Reversion takes place

Answer 8

‘O,’ the holder of a fee simple absolute, conveys to ‘A’ for life, or perhaps to ‘A’ for B’s life.

Question 9

‘O,’ the holder of a fee simple absolute, conveys to ‘A’ for life, or perhaps to ‘A’ for B’s life.

Answer 9

‘A’ has a life estate

‘O’ has a reversion

Question 10

Remainder

Answer 10

Future interest created in a grantee, never created in the grantor, created in transferees (third-party, entities other than the grantor), that are capable of becoming possessory on the natural conclusion of the present estate.

Question 11

What is an example where a Remainder takes place?

Answer 11

To ‘A’ for life, then to ‘B’

Question 12

To ‘A’ for life, then to ‘B’

Answer 12

‘A’ has a life estate

‘B’ has a vested remainder

Question 13

What types of remainders are there?

Answer 13

1. Contingent

2. Vested

Question 14

Contingent Remainder

Answer 14

Either created and is yet unknown to the taker, or subjected to “condition precedent,” or both.

Question 15

What is an example of a Contingent Remainder

Answer 15

To ‘A’ for life, then to A’s first born child.

Question 16

To ‘A’ for life, then to A’s first born child.

Answer 16

‘A’ has a life estate

‘A’s first/unborn child had a contingent remainder

Question 17

Vested Remainder

Answer 17

Both created in a known taker who is not subject to a so-called condition precedent or pre-requisite to his entry into the land.

Question 18

What is an example of a Vested Remainder?

Answer 18

To ‘A’ for life, then to ‘B’.

Question 19

To ‘A’ for life, then to ‘B’.

Answer 19

‘A’ has a life estate

‘B’ has a vested remainder

Question 20

Vested Remainder subject to complete/open divestment

Answer 20

Not subject to a condition precedent, but is subject to a condition subsequent

Remainder man is known, but remainder man’s time with the land is subject to possible forfeiture if a stated condition subsequent manifests

Question 21

What is an example of a Vested Remainder Subject to Complete/Open divestment?

Answer 21

To ‘A’ for life, then to ‘B,’ but if ‘B’ leaves the legal profession then to ‘C.’

Question 22

To ‘A’ for life, then to ‘B,’ but if ‘B’ leaves the legal profession then to ‘C.’

Answer 22

‘A’ has a life estate

‘B’ has a fee simple subject to condition subsequent

‘C’ has a vested Remainder Subject to Complete/Open Divestment

Question 23

Vested Remainder Subject to Partial Divestment

Answer 23

To a class/group

Question 24

What is an example where a Vested Remainder Subject to Partial Divestment exists?

Answer 24

To ‘A’ for life then to A’s children.

Question 25

To ‘A’ for life then to A’s children.

Answer 25

‘A’ has a life estate

A’s children have Vested Remainders Subject to Partial Divestment

Question 26

Springing Executory Interest

Answer 26

Grantor cuts short the grantor’s own interest in the property in favor of the grantee contingent on the occurrence of a specific condition

Question 27

What is an example where a Springing Executory Interest exists?

Answer 27

To ‘A,’ if ‘A’ graduates from law school.

Question 28

Shifting Executory Interest

Answer 28

Always follows a defeasible fee and cuts short someone other than the grantor, and breach proceeds to a third-party.

Question 29

What is an example where a Shifting Executory Interest exists?

Answer 29

‘O’ conveys to ‘A,’ but if ‘A’ ever uses the premises for non-residential purposes, then to ‘B.’

Question 30

‘O’ conveys to ‘A,’ but if ‘A’ ever uses the premises for non-residential purposes, then to ‘B.’

Answer 30

‘A’ has a fee simple subject to executory limitation

‘B’ has a Shifting Executory Interest

Question 31

Rule Against Perpetuities

Answer 31

Tells us that certain kinds of future interests are void if they vest too far into the future. Within 21 years after the death of some person alive at the date of the conveyance, whose life or death was relevant to the stated contingencies occurring or not.