Ownership Flashcards
Fee Simple Absolute
= 100% of ownership forever
Life Estate
= rights and control for life
*can do anything with property EXCEPT commit waste
E.g., “Otto to Andy for his life”
Reversion
= interest goes back to grantor
What does a life tenant always have to pay on the property?
Taxes & Mortgage Interest
*NOT the mortgage’s principal
Remainder
= the interest remaining after a life estate
e.g., “Gwen conveys the Farm to Lloyd for life, then to Joel.” <– Joel has Remainder
Categories of Remainders
(and what each is)
Vested Remainder = automatic transfer
(e.g., Gwen conveys the Farm to Lloyd for life, then to Joel)
Contingent Remainder = subject to an event
(e.g., Ottest conveys the Farm to Joe for life, then to Sarah if she’s married)
Vested Remainder Subject to Open (and aka?)
= remainder interest is transferred to a group of people, of which at least one must be alive - and that one person must share the interest with anyone else in OR added to the group
aka. “Partial Divestment”
(e. g., Gloria conveys Biltmore “to my son Anderson for life, and on his death to his children” ← When Gloria conveys Biltmore to Anderson, he has 1 child alive. That child has a vested remainder subject to open b/c she may have to share share her interest if Anderson has more children.)
Vested Remainder Subject to Total Divestment
= where a person’s interest can be wiped out
E.g., Jon to Nick for Nick’s life, then to Callie, but it Callie has to kids, then to Danny ← Callie’s interest could be wiped out
Fee Simple Determinable
(and the phrasing)
= a present fee simple estate that is limited by specific durational language & terminates automatically when stated event occurs
“so long as” / “as long as” / “while” / “during” / “until”
E.g., Jon conveys Swann House to Mary, so long as Mary uses it as a museum
Possibility of Reverter
(and what type of interest does it go with)
= interest AUTOMATICALLY reverts to Grantor if condition is no longer met
*goes with Fee Simple Determinable
E.g., Jon conveys Swann House to Mary, so long as Mary uses it as a museum
Fee Simple Subject to Condition Subsequent
(and phrase)
= if a future event occurs, then Grantor has right of reentry
“but if”
E.g., Jon conveys Greenacre to Bobby, but if the Jets ever win the Superbowl, Jon gets the property back
Right of Reentry
(and type of interest it goes with)
= Grantor has to act to get the land back
*goes with Fee Simple Subject to Condition Subsequent
E.g., Jon conveys Greenacre to Bobby, but if the Jets ever win the Superbowl, Jon gets the property back
Rule Against Perpetuities
= interest must vest within 21 years of after the death of the life in being at the time the interest is created - if it doesn’t, part that violates RAP is void
*don’t jump to the RAP answer - make sure the Q is asking about RAP, then be sure you know which person the Q is asking about
PUBLIC POLICY: RAP prevents people from using legal instruments to exert control over the ownership of private property for a time long beyond the lives of people living at the time the instrument was written
Joint Tenancy
= each tenant has an undivided interest in the whole property with RIGHT of SURVIVORSHIP
*Right of Survivorship TRUMPS a Will
*if one tenant conveys his interest to someone else, this SEVERS the joint tenancy into a Tenancy in Common
Tenancy in Common
= each tenant has an undivided interest in the whole property, but NO Right of Survivorship
