Future Interests: In General AND Future Interests in Grantor

Question 1

What is a “future interest”?

Answer 1

“future interest” gives its holder the RIGHT or possibility of FUTURE possession of an estate.

It is a PRESENT, legally protectable right in property

Question 2

List the future interests in grantor

List the future interests in 3rd party

Answer 2

In Grantor (“Reversionary Interests”):

1. Possibility of Reverter
2. Right of Entry
3. Reversion

In 3rd party

1. Remainders
   (i) Indefeasibly Vested Remainder
   (ii) Vested Remainder Subject to Open
   (iii) Vested Remainder Subject to Total Divestment
   (iv) Contingent Remainder
2. Executory Interest
   (i) Shifting Executory Interest
   (ii) Springing Executory Interest

Question 3

Compare all characteristics of

1. Possibility of Reverter; and
2. Right of Entry

Answer 3

Possibility of Reverter

• Comes from Fee Simple Determinable
• “To A so long as alcohol is not used on the premises”
• Estate AUTOMATICALLY reverts to grantor on happening of condition
• Transferable, descendible, devisable

Right of Entry

• Come from Fee Simple with Condition Subsequent
• “To A on the condition that if alcohol is used on the premises, O shall have right to reenter and retake the property”
• Estate does NOT revert automatically, grantor must EXERCISE his right of reentry
• Descendible and devisable, but some courts hold can’t be transferred inter-vivos

Question 4

What is a “reversion”?

How does it arise?

What are the characteristics?

What may holder of reversion sue for?

Answer 4

A “reversion” is the estate left in grantor who conveys less than what she owns

Example –> O conveys life estate w/o 3rd party remainder (“to A for life”)

How arises –> operation of law. does NOT need to be expressly reserved.

Alienable –> yes
Devisable –> yes
Descendible –> yes

May sue for WASTE and TORTIOUS damage to the reversionary interest.

Question 5

What is the rule with regards to “reversionary interests” and the Rule Against Perpetuities?

Answer 5

ALL reversionary interests are vested, and thus DO NOT implicate the Rule Against Perpetuities.

This includes:

1. possibility of reverter
2. right of entry
3. reversion