Ownership Flashcards
fee simple absolute
- 100% of ownership forever
Life Estate:
- Rights and control for life
- Cannot commit waste
- “O to A for life”
Reversion:
- Interest goes back to grantor
Interest & Taxes: life tenant
- Life tenant must pay INTEREST & TAXES
Remainder:
- Interest after a life estate
- “then to”
vested remainder vs contingent remainder
Vested Remainder: Automatic transfer
vs.
Contingent Remainder: Subject to an event
Example:
Vested Remainder:
o Jon conveys Greenacre to you for your life, then
to Bob
Contingent Remainder:
o Jon conveys Greenacre to you for your life, then
to Bob if he’s married
Vested Remainder Subject to Open/Partial Divestment:
- Refers to a class of people
- One must be alive
Example:
o Jon conveys Greenacre to you for your life, then to Bob’s children
Vested Remainder Subject to Total
Divestment:
- applies when a person’s interest can be wiped out
Example:
o Jon to you for your life, then to C, but if C has no kids then to D
Fee Simple Determinable:
A fee simple estate that automatically terminates and reverts back to the grantor upon the happening of a given event or condition
- “so long as” or “as long as”
Example:
o Jon conveys Greenacre to you as long as you use it as a museum
Possibility of Reverter:
*fee simple determinables AUTOMATICALLY reverts to grantor if condition is not met
Fee Simple Subject to Condition Subsequent:
- If a future event occurs, then grantor has right of reentry
- “but if”
Example:
o Jon conveys Greenacre to you but if the Jets ever win the Superbowl Jon gets the property back
Right of Reentry:
- Grantor must act to get the land back
Rule Against Perpetuities:
- Interest must vest within 21 years of the life in being
Joint Tenancy:
- Right of Survivorship
- Trumps a will
- Conveyance SEVERS a Joint Tenancy to a Tenancy in Common
Tenancy in Common:
- An estate with multiple tenants in which each co-tenant owns a distinct, undivided interest and each has a right to possession of the whole estate
- NO Right of Survivorship
Tenancy by the Entirety:
- Joint Tenancy between married people
- Right of Survivorship
- No conveyance without consent
- Severed by divorce
Partition:
- Court divides property in two
- Granted unless not practical
Contribution – Taxes & Mortgage:
- if Co-tenant: May seek contribution
- if Sole possessor: Only recover amount that exceeds market value
Contribution – Rent:
- Out of possession co-tenant may SHARE in RENT & PROFITS
- BUT not from a tenant in possession
- ^UNLESS they are damaging the property
(ie:) a tenant is not required to pay rent or reimburse co-tenants for tenant’s use of land
But each co-tenant has a right to share in rents from third parties and profits derived from use of land that depletes its value (e.g., timber, oil and gas, mining, etc.)
Contribution – Repairs & Improvements:
- No contribution for REPAIRS, unless necessary & requested
- No contribution for IMPROVEMENTS, unless
increase rents/profits
Periodic Tenancy:
- (Start date) – (A period of time)
- Renews unless a termination date
- Notice required to terminate
Tenancy for Years:
- (Start date) – (An end date)
- NO notice required
Tenancy at Will:
- Terminable at will
- Reasonable amount of time to terminate
Tenancy at Sufferance:
- Holdover Tenant
- Terminates by leaving or eviction
