Ownership Flashcards
What are ownership interest divided in time between?
Present interest and future interest
How to distinguish who has interest
What is the the timing of possession?
EX: O transfer Blackacre to A for life then to B. A has present possession, B has future
What is Fee Simple?
Largest possessory estate that is capable of lasting forever
- Fee Simple Absolute is a default estate
- Presumption that grantor conveys the most that they have
Is Fee Simple Freely Alienable?
yes it can be inherited on owners death, transferred through will, or intestate succession, transferred by gift or sale during owners life
How to create a fee simple
Look for words “heirs”
- not required to create but may be a good indicator
How to Precatory words (hope or wish) affect a Fee Simple?
They don’t.
Not enough to show actual intent. conveyance will need to have specific language other than hope or wish to create a fee simple
Defeasible Fees
may be terminated by occurrence of event
capable of lasting forever but also being terminated early
condition cut short the fee simple
Types of defeasible fees
fee simple determinable
fee simple condition subsequent
fee simple subject to executory interest
fee simple determinable
limited with durational language
EX: while the land is used as a farm, during the lands use as a farm
fee simple subject to condition subsequent
conditional langage, grantor must exercise a right to take possession
EX: provided that, on the condition that
Possibility of reverter
follows fee simple determinable
a future interest that automatically vest after duration period ends
Right of entry
follows FSCS
future interest held by grantor that does not automatically vest, grantor must exercise
Fee Simple subject to executory Interest
future interest will vest in a 3rd party and future interest is held by transferred
Executory Interest
interest that divest earlier interest (cut short)
life estate
present estate that is limited by the person life
“To A for Life”
How to interpret ambiguous life estate?
If Grantor does not use the language “for life” look for intent to create estate that will end at death
When does Life estate Terminate
Naturally at the person death
Can life tenant pass by will or intestate succession
No
What if the future interest if possession of life estate goes back to grantor
reversion
what is future interest if possession of life estate goes to a third party
remainder
Types of waste
Affirmative (intentional waste that decreases value)
Permissive ( neglectful conduct that decreases value)
Amerliotive (conduct that increases property value)
types of remainders
vested or contingent
what type of remainder does rule of perp. apply to
contingent
What is vested remainder
interest that has an ascertainable grantee and not subject to condition precedent
Contingent Remainder
if one or two of the requirements for vested remainder is not met then it is a contingent remainder
Is a vest remainder able to be inherited
yes
What is vested remainder subject to open
one person in the class has vested remainder
full class membership is unknown
When does vested remainder become closed?
When all class members are identifiable
Can a class remainder be contingent?
Yes
if no one in the class is vested it will be contingent
Rule of Convenience
if grant doesn’t have express closing date the ROC closes the class when any member is able to take immediate possession
Doctrine of Worthier Title
prevents remainders passing to grantors heirs, instead it passes to grantor as reversion
Rule in Shelly Case
presents against remainders for grantee’s heirs
What is fee tail
Limits estate to grantees lineal blood descendants by specific words of limitation
Life tenants rights
Rent, sell, or lease property
How does the rule of perpetuities (RAP) operate
similar to a statue of limitations
- Cant go beyond 21 years of violates RAP
How to Identify if RAP is violated
ID when the interest was created
ID what interest are subject to RAP
ID who the relevant validating life is
What does the RAP apply to
contingent remainders
executory interest
class gift
does not apply to vested remainders unless they are subject to open
