Ownership, Defeasible Fees, Life Estate, Future Interests Flashcards
What are the different ways in which property can be transferred (alienated)
- Sale
- Gift
- Devise
- Intestate Succession
When are gifts in a will (via devise) effective?
When the decedent dies
What is intestate succession?
When a person dies without a will, their heir at law (person who survives the decedent) takes by intestate succession
How are ownership interests divided
In time between present and future interests.
Key distinction: timing of possession – who has the right now and who will have the right in the future?
True or false: Someone must be ownership/possession of property at all times
True. Gaps in possession are not ideal.
Why is fee simple the largest possessory estate?
It’s capable of lasting forever.
It’s inheritable – upon owner’s death, the owner can pass it by will or intestate succession.
It’s transferrable – owner can gift or sell during the owner’s lifetime
What are the magic words for creation/identification of fee simple
“To A” (his/her heirs is now implied)
When there is an ambiguous grant, what is created?
If a grant is ambiguous, it creates a fee simple. This is the default estate b/c there’s a presumption that the grantor conveys the most s/he has.
Do words of intent or purpose hold meaning with a fee simple division?
NO. Precatory words such as “my hope and wish” are not enough to show actual intent
Is there a future interest associated with fee simple
No. Because it’s capable of lasting forever. No slicing/dicing of the interest yet.
What is the effect of a defeasible fee?
Condition or occurrence of an event will stop the fee simple
What is a fee simple determinable (FSD)?
Fee simple limited by specific durational language: “so long as” or “while” or “during” or “until”
True or false: In a fee simple determinable (FSD), the fee simple lasts while the period is in play, but as soon as the period ends, the fee simple ends
True.
What is a fee simple subject to condition subsequent (FSSCD)?
Fee simple limited by specific conditional language: “provided that” or “on the condition that” or “but if”
Is this a conditional or determinable fsd?
O conveys Blackacre “to A, but if the land is not farmed, O may reenter and retake the property”
Conditional, as O is entitled to take possession again when the the condition is met.
Focus on language to grantor
What is a possibility of reverter?
Future interest held by a grantor following a fee simple determinable
Ex: O conveys Blackacre “to A and her heirs, so long as the land is used as a public park.” O has a possibility of reverter if the land is not used as a park, his interest vests automatically.
When does the interest vest with a defeasible fee with possibility of reverter
Automatically after the durational period ends.
Fee Simple Determinable + ____________ go together
Possibility of Reverter
What happens when a future interest following a fee simple determinable is held by a third party and not a grantor?
Fee Simple Subject to Executory interest
What is the other term that equates to right of entry?
Power of termination
What is the right of entry?
Future interest held by the grantor following fee simple subject to condition subsequent.
Ex: O conveys Blackacre “to A and her heirs, but if the land is not used as a public park, O can re-enter and re-take.”
Does a right of entry vest automatically?
No, it must be reclaimed.
Fee simple subject to condition subsequent + ___________ go together?
Right of entry
Define Fee Simple Subject to Executory Interest
Fee simple ends upon the happening of an event and the future interest vests in a third party. Future interest is held in another transferee, not the grantor.
Ex: O conveys Blackacre “to A and her heirs, but if liquor is served on the premises, then to B and his heirs.” If liquor is served on Blackacre, Ben’s executory interest divests Anna of her fee simple
