Future Interests - Jan. 26 Flashcards
What is the possibility of reverter? (Barros)
The possibility of reverter is the future interest that accompanies a fee simple determinable. (144)
What is the right of entry? (Barros)
The right of entry is the future interest that accompanies a fee simple subject to condition subsequent. (144)
Ex: O grants Blackacre, “to the School Board, but if the property is no longer used for school purposes, then O may re-enter and retake the property.” O has a right of entry, SB has a FS subject to condition subsequent
What is the reversion? (Barros)
The reversion is any future interest created in the grantor that is not a possibility of reverter or a right of entry. A reversion can be understood as the portion of the grantor’s interest that the grantor retains after transferring an interest that is of limited or potentially limited duration. (144)
Ex: to A for life then to B if B survives A. If B doesn’t survive A, O has a reversion. (Eason - Jan. 31)
What happens when a grantor fails to fails to transfer all of her interest with certainty? (Barros)
Any time a grantor fails to transfer all of her interest with certainty, the grantor will have a reversion. (145)
What are the two categories future interests created in grantees are divided into? (Barros)
Remainders and executory interests. (146)
What is a remainder? (Barros)
A remainder is a future interest created in a grantee that will become possessory, if at all, on the natural end of the preceding interest. (146)
What does it mean that remainders are polite? (Barros)
They patiently wait around for the prior interest to end. (146)
Ex: That conveyance was “to A for life, then to B.” B has a remainder. This remainder will wait patiently until the end of A’s life estate and will then become possessory.
What is an executory interest? (Barros)
An executory interest is a future interest created in a grantee that will cut short or divest the preceding interest. (146)
What does it mean that executory interests are rude? (Barros)
Executory interests are rude—they jump in and end the preceding interest. Executory interests can cut short a preceding present interest, giving the executory interest holder present possession of the land. (146)
Ex: O grants Blackacre “to the School Board so long as it is used for school purposes, then to the State College.”
Ex: O grants Blackacre “to the School Board, but if the property is not used for school purposes, then the State College may enter and take the property.”
When is a remainder vested? (Barros)
A remainder is vested if it is both in an ascertained person and not subject to a condition precedent other than the natural end of the preceding estate. (146)
Ex: O conveys Blackacre “to A for life, then to A’s first child.” A has one child, C.
Ex: O conveys Blackacre “to A for life, then to B if B reaches the age of 21.” B is now 22.
When is an interest in an ascertained person? (Barros)
An interest is in an ascertained person if it is possible to point to a living person who holds the interest. (146)
Ex: O conveyed “to A for life, then to B.” B’s remainder is in an ascertained person, B, and is not subject to a condition precedent.
When is a remainder contingent? (Barros)
A remainder is contingent if it is either in an unascertained person or subject to a condition precedent other than the natural end of the preceding estate. (146)
Ex: O conveys Blackacre “to A for life, then to A’s first child.” A does not yet have any children.
Ex: O conveys Blackacrealte “to A for life, then to B if B reaches the age of 21.” B is not yet 21.
What are the three types of vested remainders? (Barros)
The three types of vested remainders: indefeasibly vested, vested in an open class, and vested subject to divestment. (147)
What is an indefeasibly vested remainder? (Barros)
An indefeasibly vested remainder is one that is certain to become possessory in the future. (148)
EX: O granted “to A for life, then to B.” B’s remainder is an indefeasibly vested remainder in fee simple absolute. It is certain to become possessory upon A’s death. (Remember that if B dies before A, B’s vested remainder will have passed on to someone else and will still become possessory.)
What is a vested remainder in an open class? (Barros)
A vested remainder in an open class is one that is held by an open class of people. (148)
Ex: O grants Blackacre “to A for life, then to my [O’s] children.” A and O are alive, and O has one child, B.