Interests in Land Flashcards
When may a life tenant use natural resources from life estate?
PURGE Prior Use Repairs and maintenance Grant Exploitation- land is suitable only to exploit
Reversion
the future interest that arises in a grantor who transfers an estate of lesser quantum than she started with, other than a fee simple determinable or a fee simple subject to condition subsequent
Remainder
A future interest created in the grantee that is capable of becoming possessory upon expiration of a prior possessory estate created in the same conveyance in which the remainder is created.
Rule of Destructability of Contingent Remainders
At common law, a contingent remainder was destroyed if it still contingent at the time the preceding estate ended.
Abolished today. Grantor would hold the estate subject to a springing executor interest.
Rule in Shelly’s Case
Applies where O conveys “To A for life, then, on A’s death, to A’s heirs.” A is live. Historically, the present and future interests merge giving A fee simple absolute. Rule of law, and not one of construction. It would apply even in contrary grantor intent.
Modern: A has life estate. O has a reversion, since A could die without heirs.
Doctrine of Worthier Title
Doctrine is still viable in most states today. It applies where O, who is alive, tries to create a future estate in his heirs.
O conveys “To A for life, then to O’s heirs.” The contingent remainder to O’s heirs is VOID (living person has no heirs). A has a life estate and O has a reversion. Rule of construction and not rule of law. Grantor’s intent controls. If grantor clearly intends to create a contingent remainder in his heirs, that intent is binding.
Common Law Rule of Convenience
The class closes whenever any member of the class can demand possession.
Executory Interest
A future interest created in transferee (a 3rd party), which is not a remainder and which takes effect by either cutting short some interest in another person (“shifting”) or in the grantor or his heirs (“springing”)
Rule Against Perpetuities
Certain kinds of future interests are void if there is any possibility, however remote, that the given interest may vest more than 21 years after the death of measuring life.
Which types of interests does RAP apply?
Contingent Remainders, Executory Interests, and certain vested remainders subject to open
Which types of interests does RAP not apply?
Any future interest in O, the Grantor;
To indefeasibly vested remainder
Vested remainder’s subject to complete defeasance.
Bright-line Rules of RAP
- A gift to an open class that is conditioned on the members surviving to an age beyond 21 violated the common law RAP.
- Many shifting executor interests violate the RAP. An executory interest with no limit on the time within which it must vest violates the RAP.
Charity exception to RAP
A gift from one charity to another does not violate the RAP
“Wait and See” or “Second Look” Doctrine
Under the majority reform effort, the validity of any suspect future interest is determined on the basis of the facts as they now exist, at the end of the measuring life.
Uniform Statutory Rule Against Perpetuities (USRAP)
Codifies the common law RAP and, in addition, provides for an alternative 90 year vesting period. Could apply life in being plus 21 or 90 years.
