MBE Property: Ownership Flashcards
define shifting executory interest
a future interest in a third party that divests the interest of the grantee by cutting short a prior estate created in the same conveyance
occurrence of a condition “shifts” estate from one grantee to another
define springing executory interest
divests the interest of the grantor or fills gap in possession in which estate reverts to grantor
vested remainder
an interest that is not subject to any conditions precedent and is created in an ascertainable grantee
e.g. to B for life, then to C and his heirs -
C has vested remainder
contingent remainder
created in a grantee that is unascertainable, or subject to express condition precedent to a grantee’s taking
normally 1 of 2:
1. when property cannot vest b/c beneficiary unknown
2. when property cannot vest b/c known beneficiary subj to condition precedent has not yet occurred
A conveys Bl to B for life, and on his death to his children. When Bl is conveyed, B does not have any children. What do B’s unborn children have?
contingent remainder
A conveys Bl to B for life, then to B’s children who attain 21 years of age. When A conveys, B has one child who is 10 years old. What does the child have?
contingent remainder
what is a vested remainder subject to open?
when remainder interest transferred to persons designated as group rather than individual, and at least one member individually ascertainable and entitled to remainder interest, but may be subject to sharing with the group
A conveys Blackacre “to my son for life, and on his death to his children.” When A conveys Blackacre, his son is alive and has one child. That child has…
a vested remainder subject to open (may have to share if A’s son has other children)
A conveys Blackacre “to my son for life, and on his death to his children who attain 21 years of age.” When A conveys Blackacre, his son is alive and has one child who is 30 years of age. That child has…
a vested remainder subject to open because his interest in Blackacre may be subject to being shared if A’s son has other children who attain 21 years of age.
Under the Doctrine of Worthier Title, a conveyance by a grantor of “to A for life, then to my heirs” creates what type of interest in the grantor’s heirs?
no interest
what is the Rule of Convenience?
a rule of interpretation that can operate to prevent the application of the Rule AP to a class transfer
membership in class closes whenever any member of the class is entitled to immediate possession of a share of the class gift
when is a future interest devised by a will created?
at the testator’s death
what is a validating life?
a person who tells us whether the interest must vest or fail within the perpetuities period
What two things does the Uniform Statutory Rule Against Perpetuities (USRAP) do?
adopts a wait and see stance -
1. an otherwise invalid interest is valid if it does in fact vest w/in 90 years after its creation
2. rule gen does not apply to future interests arising from commercial transactions (options to purchase, preemptive rights, future leases)
cy pres doctrine
equitable approximation; court makes changes to the conveyance, such as reducing a time limit for a future interest to take effect to 21 years after the expiration of the last measuring life, in order to come “as near as possible” to the intent of the transferor while staying within the bounds of the Rule
tenancy in common
two or more co owners have equal right to possess property but do not have right of survivorship wrt property interest held by another co-owner
joint tenancy
two or more persons own property with right of survivorship
in a joint tenancy, what is the majority view of what happens when a tenant grants a mortgage?
lien theory: mortgage is only a lien on property and does not sever joint tenancy; severance only upon foreclosure sale following default
in a joint tenancy, what is the minority view of what happens when a tenant grants a mortgage?
title theory: granting of mortgage by joint tenant constitutes transfer of title
mortgagee and joint tenants converted to tenancy in common; however joint tenants continue to hold their property interests together as joint tenants if multiple of them
tenancy by the entirety
joint tenancy between married persons with a right of survivorship
JTs must be married when deed executed/conveyance occurs,
five unities and who they apply to
1.
2.
3.
4. unity of possession (TiC and JT)
5. unity of person (TbE)
does the holder of a future interest who shares that interest with another have the ability to maintain an action for involuntary partition?
no, because they have no right to immediate possession
