Future Possessory Interests Flashcards
reversion
grantor transfers a shorter estate than she owns.
possibility of reverter
grantor transfers a determinable estate. Must be a fee simple determinable
Right of entry
Reserved on the grant of an estate subject to a condition subsequent. Fee simple subject to a condition subsequent
springing executory interest
cuts short reversion. Once the third party action happens, then they get the property and the grantor no longer has it.
Remainders
possessory only on the natural termiantion of the prior estate
vested - if made in an ascertained person with no conditions precedent
otherwise contingent remainders
vested remainders
indefeasibly vsted remainder
vested remainder subjec tot complete defeasance
vested remainder subject to open
contingent remainders
when created in unascertainable takers or yet to be determined conditiosn or both
unascertainaed takers - to A for life then to B’s children but B has no living childrn yet
unmet condition precedent - To A for life, then if B graduates from colleged, to B
IF THERE ARE CONDITIONS ITS ALWAYS POSSIBLE FOR REVERSION BECUASE CONDITISON COULD FAIL
indefeasibly vested remainder
Satisfied the condition for taking and get to take afte the other estate ends. If dies, then his interests passes to his heirs by wills or intestacy
vested remainder subject to complete defeasance
remainder is known and no condition precedent his right of possession could be cut short by a condition subsequent. when taken alone and set off by commas would create a vested remainder and the language of condition comes after that language.
To A for life and then to B, provided however if B dies under 25, to C.
vested remainder subject to open
a) vested in a category, at least one of whom can take, but there could be more class memebrs that could join
e) rule of convenience - tells if class closes whenever any member is within its right to demand possession. Afterborn don’t get to share except the womb rule - if in the womb can share. If C and D were eligible to take but die, then it goes to their heirs
vested remainder
known taker and not subject to any conditions
a) if vested could be • indefeasibly vested remainder no conditions precedent or subsequent • subject to complete defeasance - condition subsequent To B but only if B survives 25 • vested remainder subject to open • class of takers • at least one can take but the class is open so more can take • class is closed when no additional can take • class closes rule of convenience, whne they can demand possession
Class Gifts
c. Class gifts—remainders in a class are contingent if no member of the class yet exists, vested if all possible members exist, and vested subject to open if more members might come to exist
Rules Against Perpetuities
a. Any future interest that is not certain to vest or fail, however remote, within a life in being plus 21 years is void.
RAP process
a) step 1 - figure out which future intrest has been created
b) only applies to contingent remainders, executory interests, class gifts (even if vested remainders), options and rights of first refusal, and powers of appointment
c) figure out the grant and conditions what has to happen for feature interest to take
d) measuring life - find someone alive at the date of conveyance and determine their life and death is relevant to the conditions
e) determine if will know within 21 years of death if someone will take with death of measuring life.
Only the interest that violates RAP is stricken
departures from RAP
1) “Wait and see” statutes—validity of interest determined by actual future events wait until the measuring life to end and then look at the grant to see if we have the answer.
2) Uniform Statutory Rule Against Perpetuities—90-year vesting period, “wait and see” approach use life and being + 21 or within 90 days.
3) Cy pres approach—invalid interests reformed to match grantor’s intent
a) as near as possible.
b) can reform a grant that would offend . stays as close as possible to grantor intent
