interests and estates Flashcards
what do estates represet
represents a person’s rights of ownership in land
what do estates represent/answer
it specific that the ownership rights will last for a specified time period; answers how long
how do we refer to landowners title
Interest in estate
what are the two types of freehold estates and describe them
fee estates- not measured by someones life
life estate - measured by someones life
examples of fee estate conveyence
to a
to a and his heirs
to a as long as
examples of life estate conveynece
to a for life
to a as long as he lives
four types of fee estates
Fee simple absolute
Fee simple determinable
Fee simple subject to condition subsequent
Fee simple subject to executory limitation
what are defeasible fees and which freeholds are defeasible fees?
defeasible fees= means they are subject to termination
Fee simple determinable, subject to condition, and subject to executory limitation
what is a fee simple absolute and what are the phrases that we look for?
The estate that has no restrictions in the title
The owner can use the land WITHOUT restriction; no contingency or circumstance that could either divest, cut short, or terminate the owner’s title
Phrases to look for
To A
To A and his heirs
To A in fee simple
what is a fee simple determinable and what are the phrases we look for?
its duration based;
When a grantor grants the land for a duration that is measured by the continued existence of a circumstance
The grantor places a CONTINGENCY on the fee estate, and if that contingency is met, the fee state reverts back to the grantor AUTOMATICALLY
Phrases to look for
While
During
Until
So long as
what is a fee simple subject to condition subsequent and what are the trigger phrases
condition based
When a grantor transfers land to a grantee on a SPECIFIC CONDITION that some circumstance continues to exist
A contingency is made via the condition, and if the contingency occurs, the fee estate reverse back to the grantor
Note – unlike the
determinable, if the conditional contingency occurs here, the grantor MUST ACT to exercise here right to take back title to the land
Phrases to look for
Provided that
On condition that
If
But if
Provided
However
Unless
what is a fee simple subject to executory limitation and what are the trigger phrases
When a grantor transfers land to a grantee, but upon the occurrence of a contingency, title to the land transfers to some other person who is not the grantor
Title to the land AUTOMATICALLY transfers to the third party on the happening of the contingency
There are no trigger words here, just look for language that shows that a third party will receive the title upon the happening of the contingency
who is the grantor
the person transferring the land
who is the grantee
the person getting the land
what is a life estate pur autre vie
when the length of the life estate is measured by someone other than the person who holds the life estate
ex of fee simple determinable
To bill SO LONG AS it has no pond
ex of fee simple subject to condtion subsequent
To bill provided that it has no pond
ex of fee simple subject to executory limitation
To bill so long as it has no pond while b is alive; otherwise to oprah
what is the difference between a fee simple determinable and a fee simple subject to condtion subsequent
determinable = ends automaticallu upon the happening of the condtion subsequen
condtion subsequent= doesnt automatically end; the grantor has to assert his right of entry
what does it mean by saying that a life estate is alienable inter vivos
means that its transferable during the life tenants life by the life tenant for a term lasting so long as the og life tenant lives
how do we know if something is a fee simple or a life estate
a judge will first read the plain lang of the document attempting to ascertain the grantor or testators intent
what question does ‘estate’ answer
how long?
what question does ‘interst’ represet
when?
what is a present interest and what is a future interest
Present interest- when the person can immediately begin exercising their rights to the land
Future interest- represents a future time at which a property owner may exercise rights to possess the land
what is a possibilty of reverter
The fi associated with the fee simple determinable ; it is what the grantor retains when they give a fee simple determinable to the grantee
how do you descirbe the interest a grantee holds when he transfers a fee simple determinable
possibility of reverter in a fee simple absolute
is the possibilty of reverter automatic?
yes, once the condtion is met/broken the grantor gets it back automatically
Ex: O conveys land to A WHILE A is a member of the church – who holds what and what will happen if A is no longer a member of the church?
A holds a present interest in a fee simple absolute
O holds a possibility of reverter in a fee simple absolute
If the duration ends via A no longer being a member, O will hold a present interest in fee simple absolute
what is a right of entry
The fi associated with fee simple subject to condition subsequent
Also held by the grantor
Different because while the grantor is given the power to get the estate back, they must RETAKE THE estate – its not automatic!
Ex: O gives land to A PROVIDED, HOWEVER, that A continues to be a member of the church – who holds what
A holds a present interest in fee simple subject to condition subsequent
O holds a right of entry in fee simple absolute
what is an executory interest
The fi associated with fee simple subject to executory limitation ; While the other two deal with the land going back to the grantor, this one deals with the land transferring to a third party
The third party automatically takes the fee simple absolute on the happening of the event
Ex: o gives land to A, provided, however, that A remains enrolled as a student; OTHERWISE TO C – who holds what
A= holds a present interest in a fee simple subject to executory limitation
C= holds shifting executory limitation in a fee simple absolute
O=holds nothing
what are the two types of executory interest?
shifting= the most common; when the estate is cut short it SHIFTS from the og grantee to a third party
This shift to the third party is automatic
springing= occurs when, at the time of the conveyance, the grantor does not transfer a present interest to anyone; he retains the present interest for himself, conveying only a FI to a third party; usually follows a gap in time
Ex: alex conveys land to betty(who is single) but places a condition that betty only takes title when she marries frank
who holds what
Betty will never hold a present interest in the land UNTIL she marries frank
Alex- holds the present interest in a fee simple subject to executory limitation
Betty: holds a springing executory interest in fee simple absolute
O conveyed Blackacre to A and his heirs, but if A uses blackacre for commercial purposes, then to B. – who owns what
A- present interest in a fee simple subject to an exectory limitation
b- shifting execotry interst in a fee simple absolute
what is the FI for the fee simple
there is none!
what are the two FIs for life estates
reversion and remainder
Fee simple determinable FI
Possibility of reverter in fee simple absolute –automatic
Fee simple condition subsequent FI
Right of entry in fee simple absolute – not automatic
Fee simple sub to executory limitation FI
Executory interest in fee simple absolute -two types (shifting and springing)
How do you spot a sprining exectuory limittaion
you should alwasy look to see who holds the PI at the time of the conveyence; if its the grantor, then the grantee will hold a sprining, if the grantee holds the PI, then the named third party holds a shifitng
whats the rule for springining exectory limitation
when an executory interest cut short the grantor’s interests, it is a springing interest, and the grantor holds a present in a fee simple subject to executory limitation
what is a reversion
the future interest that a grantor holds and that follows after a life estate of the grantee AKA it REVERTS BACK to the grantor
Ex: o conveys land to A for life – who holds what
A= present interest in a life estate
O=a reversion in fee simple absolute
what is a remainder
life estate FIs going to a third party; two types – contigent and vested
what is a contingent remainder
a remainder that is subject to a condition precedent
Condition precedent= a condition that must be met before the remainder can be realized
ie you get the remainder if a contingency occurs in the future
O to A for life, then to C if C paints his garage door blue. – who holds what
A holds a present interest in a life estate
C holds a contingent remainder in fee simple absolute
O holds a reversion in a fee simple absolute
O holds a reversion because if C never paints the door blue, we can assume that the land goes back to the grantor
name the three types of vested remainders (ie the FI of a life estate going to a third party)
Indefeasibly vested remainder
Vested remainder subject to divestment
Vested remainder subject to open
what is a vested remainder
one that is NOT contingent on some future event happening
what is an Indefeasibly vested remainder-
a remainder that can’t be stripped away by some event or condition; once vested, the indefeasibly vested remainder stays
Ex: O to A for life, then to B – who holds what
A holds a present interest in a life estate
B holds an indefeasibly vested remainder in fee simple absolute
what is a Vested remainder subject to divestment
a vested remainder that CAN BE CUT SHORT if some future event or condition occurs
the person who will take the property if the remainder is cut short holds an executory interest.
Ex: O to A for life, then to B, but if B ever divorces his spouse, then his interest in the property shall go to D
who holds what
A holds a present interest in a life estate
B holds a vested remainder subject to divestment in fee simple subject to executory limitation
D holds a shifting executory interest in fee simple absolute
what is a Vested remainder subject to open
when a person holding a vested remainder (ie a remainderman) can be joined in the future by another remainderman in a CLASS
what is a class (ie in relation to a vested remainder subject to open ) and when is it considered open
A class is a designated group that could possibly consist of more than one person or member
Ex: a class may be designated via ‘my children’
A class is open when the number of members could increase , however, if there is no logical way for the class to increase in size, the class is closed
Ex: to fred for life, then to fred’s children. – at the time of the conveyance, fred only has one child, pebbles
who holds what?
Fred holds a present interest in a life estate
Pebbles holds a vested remainder subject to open in fee simple absolute
Because is is possible that fred could have more children, that unborn child would join pebbles as a remainderman
what happens when unborn children are part of the class of remaindermen
they hold continent remainders (with the contingency of being born)
whats a good image to think of with a vested remainder subject to divestment?
think about somone snacthing a sweater vest from you; the remainder (ie the sweater vest) is yours, but if you do something and fufil the condtion, it gets snacthed from you
what do you need to remember about the vested remaider subject to open
that we are talking about a potential class/group of people that are sharing the remainder
what do you need to rememeber if there is a contignecy attached to a class that is open
it can’t be a vested remainder subject to open because it is a contingency!
what needs to go through your head when you see a a contingent remainder, vested remainder subject to open, and executory interest
I NEED TO GO THROUGH THE RAP TEST!
