Ownership Flashcards
Fee simple absolute
all rights, never ends, escheats to state if no will or heirs, “to A and his heirs” (common law); “to A” (modern law)
Fee Simple defeasible
durational language (for so long as, during, until, or while), automatic termination, reverts to grantor
Fee simple subject to a condition subsequent
conditional language (provided however, however if, but if, on condition that, or in the event that), grantor must reserve termination-no termination power=FSA
Fee simple subject to an executory interest
conditional or durational language where estate passes to 3P upon occurrence of event
Fee tail
only descends to grantee’s children, disfavored=interpreted as FSA
Life estate
for grantee’s life, reverts to grantor, can be defeasible; Life estate pur autre vie-life estate measured by last surviving 3P
Term
limited in duration
Grantor future interests
Never violate RAP b/c already vested
Possibility of reverter:
• FSD, automatic, freely transferable
Right of re-entry/power of termination
• FSSCS or life estate, must be in grant, descendible and devisable but not transferable via inter vivos
Reversion
•life or term estate, freely transferable
Grantee future interests
Executory interest: any interest created in a 3P that follows the granting of a fee (FSSCS or FSD); subject to RAP
• Springing: grantor to grantee
• Shifting: grantee to grantee
Remainder: future interest created in a third person that takes effect at natural end preceding estate
• Vested: ascertainable person and no condition precedent (y cannot happen until x happens) to his or her taking other than the termination of the preceding estate; once vested, interest is transferable
Vested Remainder Subject to Total Divestment: vested but subject to condition subsequent (if x happens, y happens)
Vested Remainder Subject to Open: one ascertainable member in class but class could grow; opens at inter vivos transfer or at death of testator; any potential RAP problem will void entire transfer, closes as soon as any class member can take immediate possession; class members already alive, are given a chance to see if they will meet the condition once class closes
• Contingent: not vested
Doctrine of destructibility of contingent remainders
Doctrine of merger
Rule in Shelley’s Case
Doctrine of Worthier Title
grantor cannot create a remainder in your heirs (i.e., a remainder interest in a will is a reversionary interest that children will receive at grantor’s death)
Doctrine of Waste
if less than a fee estate, cannot harm property at the expense of next owner
Voluntary Waste: life tenant cannot intentionally or negligent damage property
Permissive Waste: A life tenant must take reasonable steps to avoid damage
Ameliorative Waste: Substantial improvements are allowed if MV not impaired and permitted by the remainderman OR a substantial and permanent change in the neighborhood justifies the improvement.
Remainderman can sue for past or future waste; vested-damages and injunction; contingent-only injunction
Restraints on Alienation
Total: not valid on fee, less than fee-valid if reasonable
Partial: valid if reasonable
o Purchase option: you have to let me repurchase whenever I want
o Right of first refusal: you have to give me chance to repurchase
Reasonable: limited in scope or time, the purpose of the restraint, the legitimate interests of the party, and whether the restraint is supported by consideration
