Ownership

Question 1

Name the present estate forms

Answer 1

1. Fee simple absolute
2. Defeasible fees
   2(a) Fee simple determinable
   2(b) Fee simple subject to condition subsequent
   2(c) Fee simple subject to condition subsequent
3. Life estate

Question 2

What is fee simple absolute?

Answer 2

Absolute ownership of infinite duration.
Granted by words “to A” or “to A and his heirs”
Freely alienable and no future interest

Question 3

What is a defeasible fee?

Answer 3

A present estate of potentially infinite duration, subject to termination by occurrence of event

Question 4

What is fee simple determinable?

Answer 4

Terminates upon happening of a stated event and automatically reverts to grantor.
Granted by “for so long as”, “while”, “during”, “until”
Alienable, devisable, descendible, but subject to conditions that limits duration
Grantor retains possibility of reverter

Question 5

What is fee simple subject to condition subsequent?

Answer 5

Grantor retains right to terminate estate upon happening of a stated event (intent to terminate)
Granted by “upon condition that”, “provided that”, “but if”, “if it happens that”
Grantor must use clear conditional language and specifically mention right to enter (devisable/descendible)

Question 6

What is fee simple subject to executory interest?

Answer 6

Terminates upon happening of stated event and land passes to third party
“To A, but if X ever occurs, then to B”
If condition is broken, estate automatically forfeited in favor of third party

Question 7

What is a life estate?

Answer 7

A fully transferable estate during measuring life

If measured by grantee’s life, not devisable/descendible

Question 8

What are a life tenant’s rights and duties?

Answer 8

Right to possess
Right to collect rents/profits; right to lease/sell/mortgage must pay taxes on income or rental value of land
Duty to not commit waste

Question 9

What are the three types of waste?

Answer 9

Affirmative - overt conduct causing decrease in property value
Permissive - negligent conduct causing decrease in property value
Ameliorative - overt conduct increasing property value

Question 10

What are the three types of concurrent estates (co-tenancies)?

Answer 10

1. Tenancy in common
2. Joint tenancy
3. Tenancy by the entirety

Question 11

What is a tenancy in common?

Answer 11

Two or more grantees with unity of possession
No right of survivorship
Undivided interest with unrestricted rights to possess the whole
Interest freely devisable/descenbible

Question 12

What is a joint tenancy?

Answer 12

Must be created with express language granting two or more tenants a right of survivorship.
Requires four unities (PITT): i) possession; ii) interest; iii) time; and iv) title

Question 13

How can one sever a joint tenancy?

Answer 13

Sale (don’t need others’ consent; severs JT as to seller, but non-transferees remain intact)
Partition (voluntary agreement, judicial action, or forced sale)
Mortgage (sever JT under title theory, but not under lien theory)

Question 14

What is a tenancy by the entirety?

Answer 14

JT with right of survivorship
Requires five unities (PITT+M): i) possession; ii) interest; iii) time; iv) title; and v) marriage
Protected from creditors of only one spouse
Neither spouse can unilaterally defeat ROS by conveyance to third party

Question 15

What are the rights and obligations of co-tenants?

Answer 15

Co-T in exclusive possession not liable for rents/profits unless ouster
Co-T in possess can collect for operating expenses
No contribution for reasonable repairs/improvements unless accounting/partition)
Liable for third party rent

Question 16

What is a future interest?

Answer 16

Gives holder a present, legally-protected right or possibility of future possession of an estate

Question 17

What is a reversion?

Answer 17

Arises in grantor who transfers estate less than he owns other than a FSD or FSSCS (usually a LE or estate for years)
NOT subject to RAP

Question 18

What is a possibility of reverter?

Answer 18

Automatically reverts to grantor upon occurrence of state event when FSD conveyed

Question 19

What is a right of reentry?

Answer 19

Held by grantor after FSSCS granted

Permits grantor to re-enter and retake property after the condition occurs

Question 20

What is a remainder?

Answer 20

A future interest that becomes possessory upon expiration of prior estate of known fixed duration created in same conveyance in which the remainder is created (usually LE)

Question 21

What is a vested remainder?

Answer 21

A remainder not subject to any conditions precedent and created by ascertainable grantee
Transferable inter vivos and devisable/descendible

Question 22

What is a vested remainder subject to open?

Answer 22

At least one member is class qualified to take possession, so each class member's share subject to partial diminution because additional takers not yet ascertained can still vest.
Rule of convenience closes class when any member is entitled to immediate possession.

Question 23

What is a vested remainder subject to complete?

Answer 23

Occurrence of condition subsequent completely divests remainder

Question 24

What is a contingent remainder?

Answer 24

Unascertainable grantee or if subject to express condition precedent to grantee’s taking (because of unknown beneficiary or known beneficiary subject to condition precedent not yet occurred)

Question 25

What is an executory interest?

Answer 25

A future interest in a third party, not a remainder, and cuts prior estate short upon occurrence of specified condition.
Transferable and subject to RAP

Question 26

What is the rule against perpetuities?

Answer 26

At the creation of the interest, the future interest must vest or fail by the end of a life in being, plus 21 years.