Future Interests - Jan. 26

Question 1

What is the possibility of reverter? (Barros)

Answer 1

The possibility of reverter is the future interest that accompanies a fee simple determinable. (144)

Question 2

What is the right of entry? (Barros)

Answer 2

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

Question 3

What is the reversion? (Barros)

Answer 3

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)

Question 4

What happens when a grantor fails to fails to transfer all of her interest with certainty? (Barros)

Answer 4

Any time a grantor fails to transfer all of her interest with certainty, the grantor will have a reversion. (145)

Question 5

What are the two categories future interests created in grantees are divided into? (Barros)

Answer 5

Remainders and executory interests. (146)

Question 6

What is a remainder? (Barros)

Answer 6

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)

Question 7

What does it mean that remainders are polite? (Barros)

Answer 7

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.

Question 8

What is an executory interest? (Barros)

Answer 8

An executory interest is a future interest created in a grantee that will cut short or divest the preceding interest. (146)

Question 9

What does it mean that executory interests are rude? (Barros)

Answer 9

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.”

Question 10

When is a remainder vested? (Barros)

Answer 10

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.

Question 11

When is an interest in an ascertained person? (Barros)

Answer 11

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.

Question 12

When is a remainder contingent? (Barros)

Answer 12

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.

Question 13

What are the three types of vested remainders? (Barros)

Answer 13

The three types of vested remainders: indefeasibly vested, vested in an open class, and vested subject to divestment. (147)

Question 14

What is an indefeasibly vested remainder? (Barros)

Answer 14

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.)

Question 15

What is a vested remainder in an open class? (Barros)

Answer 15

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.

Question 16

What is a vested remainder in an open class also known as? (Barros)

Answer 16

The vested remainder in an open class also is often called a vested remainder subject to open or a vested remainder subject to partial divestment. (148)

Question 17

What is a vested remainder subject to divestment? (Barros)

Answer 17

A vested remainder subject to divestment is a vested remainder that may be divested by an executory interest before it becomes possessory. (148)

Ex: O grants Blackacre “to A for life, then to B, but if B ever becomes a lawyer, then to C.”

Question 18

O grants Blackacre “to A for life, then to B’s children, but if B ever becomes a lawyer, then to C.” A and B are alive, and B has one child, D.

What is this an example of? (Barros)

Answer 18

This is an example of a vested remainder which is both in an open class and subject to divestment. (148)

D has a vested remainder in an open class subject to divestment. D’s remainder is in an open class because B could have more children. It is subject to divestment because it will be divested by C’s executory interest if B ever becomes a lawyer.

Question 19

Is there such thing as possibility of reversion? (Barros)

Answer 19

No. There is a possibility of reverter and a reversion. Be sure not to confuse “reverter” and “reversion.” (150)

Question 20

What is an alternative contingent remainder? (Barros)

Answer 20

Two contingent remainders that revolve around the same contingency. (151)

Ex: O grants Blackacre “to A for life, then to B if B survives A, and if B does not survive A, then to C.” A, B, and C are alive.